CORFAC News

Falls Church, VA (October 4, 2012) – CORFAC International (Corporate Facility Advisors) discussed commercial real estate trends in five global markets at its International Panel held in September at the CORFAC 2012 Fall Summit in Boston, MA. 

The panel was moderated by Judy Shenefield, World President of The International Real Estate Federation (FIABCI), based in Paris, France. The panelists were representatives from five of CORFAC’s International affiliates -- in Germany, Ireland, Russia, Italy, and India.

Hans-Ulrich Berendes, Owner & CEO, Berendes & Partner Consulting GmbH/CORFAC International, based in Hamburg, Germany, explained that the European submarkets have been hit unevenly by the Eurozone financial crisis. 2011 sales volume was 108 billion Euros (US$140 billion) and through the first half of 2012, it was 47 billion Euros ($61 billion), 7% down compared to the first half of 2011.

Declan O’Reilly, HT Meagher O’Reilly Property Consultants/CORFAC International, based in Dublin, Ireland reported that Ireland’s property markets haven’t recovered much from the recession and are still down; land values are down 90% from peak with an average price-per-acre of $10,924 while prime office rents are down 60%, with CBD rates of $34.50/ sq. ft.  4.6% of U.S. Foreign Direct Investment is invested in Ireland, more than the total invested in Brazil, Russia, India and China combined.

Marina Kukharenko, Senior Consultant, Office Real Estate Department and Acting Head of Foreign Markets Department, Bright Rich/CORFAC International, based in St. Petersburg, Russia, also participated in the panel. Kukharenko discussed the average selling price for Class A offices in St. Petersburg ($4,000-$4,600 per square meter), which is about 25-40% less than comparable space in Moscow ($6,000-$8,000).  Thus, a 5,000 square meter (53,800 sq. ft.) Class A office building in St. Petersburg could sell for $20 million ($371/sq. ft.).Warehouse space trades for about the same in each market -- $1,100-$1,400 per square meter. 

Antonio Campagnoli, Principal, IL Punto Real Estate Advisor srl/CORFAC International, based in Milan, Italy, detailed the moderate demand for industrial space in Northern Italy.  Landlords remain inclined to offer large incentive packages to lure tenants. Vacancy rates in the Milan region are 12.5%, Turin region 14% and Verona region 13.8%, with Milan’s average industrial rental rates at $5.90/sq. ft. per year, $4.40 in Turin and $5.30 in Verona.

Sanjeet Narain, Managing Director, NARAINS Corporation International Properties/CORFAC International, based in Mumbai, the largest city in India, reported a commercial property inventory of 66 million square feet (comparable in size to San Francisco’s) and current vacancy of 18%.  U.S. companies are the largest occupiers of leased office space in India (50%), followed by India (30%), European Union (13 %) and others (7%).

About CORFAC International
CORFAC International (Corporate Facility Advisors) is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail real estate leasing and investment sales, multifamily property acquisitions and dispositions, property management and corporate services in 150 markets worldwide. www.corfac.com