THE INTELLIGENT INVESTOR
April 24, 2013, 12:25 p.m. ET
Here Comes the Next Hot Emerging Market: the U.S.
By JASON ZWEIG
The investment visionary who coined the term "emerging markets" and helped launch the first funds to invest in developing countries thinks he has spotted what you might call the next great emerging market.
It is called "the United States."
http://online.wsj.com/article/SB10001424127887324763404578432832232151840.html
Thursday, April 25, 2013
Samsung SRA Asset Management and Cushman & Wakefield Investors acquire 30 Crown Place in the City of London
SAMSUNG SRA ASSET MANAGEMENT AND CUSHMAN & WAKEFIELD INVESTORS ACQUIRE 30 CROWN PLACE IN THE CITY OF LONDON
24 Apr, 2013, London
Samsung SRA Asset Management ('Samsung SRA') through Cushman & Wakefield Investors ('CWI') has acquired 30 Crown Place, London EC2, on behalf of South Korean institutional investors from a fund managed by Hannover Leasing GmbH & Co. KG.
http://www.cushwake.com/cwglobal/jsp/newsDetail.jsp?Language=EN&repId=c59700005p&Country=GB
24 Apr, 2013, London
Samsung SRA Asset Management ('Samsung SRA') through Cushman & Wakefield Investors ('CWI') has acquired 30 Crown Place, London EC2, on behalf of South Korean institutional investors from a fund managed by Hannover Leasing GmbH & Co. KG.
http://www.cushwake.com/cwglobal/jsp/newsDetail.jsp?Language=EN&repId=c59700005p&Country=GB
Distressed Debt Buyers Eye European Market
Distressed Debt Buyers Eye European Market
Apr. 24, 2013
Beth Mattson-Teig
Investors hunting for higher yields are turning their attention to Europe, where a substantial pipeline of distressed commercial real estate debt is poised to hit the market.
http://nreionline.com/private-equity/distressed-debt-buyers-eye-european-market
Apr. 24, 2013
Beth Mattson-Teig
Investors hunting for higher yields are turning their attention to Europe, where a substantial pipeline of distressed commercial real estate debt is poised to hit the market.
http://nreionline.com/private-equity/distressed-debt-buyers-eye-european-market
Tuesday, April 23, 2013
Top of Mind: Bond Bubble Breakdown
Top of Mind: Bond Bubble Breakdown
Published April 22, 2013
Hi all, just out with a new Top of Mind: Bond Bubble Breakdown. Near multi-generational low bond yields, driven at least in part by US Federal Reserve asset purchases, has pushed the question of whether or not the bond market is a bubble to Top of Mind.
Published April 22, 2013
Hi all, just out with a new Top of Mind: Bond Bubble Breakdown. Near multi-generational low bond yields, driven at least in part by US Federal Reserve asset purchases, has pushed the question of whether or not the bond market is a bubble to Top of Mind.
Monday, April 22, 2013
Docklands: Shifting the market dynamic for Melbourne CBD office
Docklands: Shifting the market dynamic for Melbourne CBD office
Australia ViewPoint
SUMMARY
Docklands has been the engine room of growth in the Melbourne CBD office market over the last decade or so and based on existing development will continue to be over 2013 and 2014. The historical strong growth has been well absorbed against a backdrop of strong conditions in the office occupier markets, which saw the Melbourne market outperform other capital cities in terms of space growth and yield. With occupier conditions now materially weaker, forthcoming supply in Docklands poses clear risks to CBD vacancy. To date, the market seems to be digesting this as part of a cyclical slowing, a rebalancing or “normalisation” after a period of strength, rather than posing a material risk to the long run performance of the Melbourne market. Yields have been relatively stable, particularly for premium assets. We think that is likely to remain the case through 2013 and 2014.
Download full report
Australia ViewPoint
SUMMARY
Docklands has been the engine room of growth in the Melbourne CBD office market over the last decade or so and based on existing development will continue to be over 2013 and 2014. The historical strong growth has been well absorbed against a backdrop of strong conditions in the office occupier markets, which saw the Melbourne market outperform other capital cities in terms of space growth and yield. With occupier conditions now materially weaker, forthcoming supply in Docklands poses clear risks to CBD vacancy. To date, the market seems to be digesting this as part of a cyclical slowing, a rebalancing or “normalisation” after a period of strength, rather than posing a material risk to the long run performance of the Melbourne market. Yields have been relatively stable, particularly for premium assets. We think that is likely to remain the case through 2013 and 2014.
Download full report
Tuesday, April 16, 2013
ZEW: Poor data cause concern among analysts
Commerzbank Corporates & Markets
Economic Research
https://research.commerzbank.com
Economic Briefing
ZEW: Poor data cause concern among analysts
The ZEW Index for economic expectations in Germany tumbled from 48.5 to 36.3 in April, which was a stronger fall than expected by most analysts. The camp of economic optimists has clearly shrunk. This was probably caused by the decline in sentiment indicators in March and the poor data from German industry. Even so, we still expect the German economy to pick up considerably in the coming months. This is likely to be confirmed by the purchasing managers’ index and the Ifo business climate – due next week – that should recover from March-setbacks.
Analyst:
Ulrike Rondorf
Economic Research
https://research.commerzbank.com
Economic Briefing
ZEW: Poor data cause concern among analysts
The ZEW Index for economic expectations in Germany tumbled from 48.5 to 36.3 in April, which was a stronger fall than expected by most analysts. The camp of economic optimists has clearly shrunk. This was probably caused by the decline in sentiment indicators in March and the poor data from German industry. Even so, we still expect the German economy to pick up considerably in the coming months. This is likely to be confirmed by the purchasing managers’ index and the Ifo business climate – due next week – that should recover from March-setbacks.
Analyst:
Ulrike Rondorf
Eco Analysis - German ZEW survey fell in April (H. Amourda, B. Hilliard)
Eco Analysis - German ZEW survey fell in April (H. Amourda, B. Hilliard)
■ German ZEW survey fell in April
Waiting for the WEO of the IMF, some key economic data were released this Tuesday. The German ZEW survey (economic sentiment) fell for the first time since November 2012, from 48.5 to 36.3 in April. On the inflation side, the final euro aggregate CPI inflation confirmed the flash estimate at 1.7% yoy while the UK CPI printed at 2.8% yoy in March. Looking ahead, we will watch closely the UK labour data and MPC minutes due to be released on Wednesday.
The German ZEW survey reported a fall in both current situation (down 4.4 points to 9.2) and economic sentiment (down 12.2 points to 36.3). The Cyprus bail-in and questions on the euro area crisis management probably affected investors' sentiment. However, the balance of answers is still positive and points to an improvement of the economic growth in the next six months. Moreover, it is too early to expect a continued downward trend in sentiment given some recent positive hard data, but confirms our view of weaker growth in Q2.
■ German ZEW survey fell in April
Waiting for the WEO of the IMF, some key economic data were released this Tuesday. The German ZEW survey (economic sentiment) fell for the first time since November 2012, from 48.5 to 36.3 in April. On the inflation side, the final euro aggregate CPI inflation confirmed the flash estimate at 1.7% yoy while the UK CPI printed at 2.8% yoy in March. Looking ahead, we will watch closely the UK labour data and MPC minutes due to be released on Wednesday.
The German ZEW survey reported a fall in both current situation (down 4.4 points to 9.2) and economic sentiment (down 12.2 points to 36.3). The Cyprus bail-in and questions on the euro area crisis management probably affected investors' sentiment. However, the balance of answers is still positive and points to an improvement of the economic growth in the next six months. Moreover, it is too early to expect a continued downward trend in sentiment given some recent positive hard data, but confirms our view of weaker growth in Q2.
Chile – Consumer confidence retreats in March.
Chile – Consumer confidence retreats in March.
March consumer confidence fell to 56.8 from 58.1 in February. This was the lowest confidence level since a 53.4 print reached in November. However, compared with last March, consumer confidence improved 22.9%. We continue to expect a gradual moderation in domestic demand during the year, helping to keep inflation in check and the policy rate steady.
March consumer confidence fell to 56.8 from 58.1 in February. This was the lowest confidence level since a 53.4 print reached in November. However, compared with last March, consumer confidence improved 22.9%. We continue to expect a gradual moderation in domestic demand during the year, helping to keep inflation in check and the policy rate steady.
Monday, April 15, 2013
First Insights: China: Minister of Finance indicates policy easing unlikely
Economics Research | Asia Ex-Japan
15 April 2013
First Insights: China: Minister of Finance indicates policy easing unlikely
The surprisingly weak Q1 GDP data in China have led to the important question: will the government loosen policy to stimulate the economy as it did in 2009 and 2012? We believe policy easing is not likely. An article published today by the newly-elected Minister of Finance Lou Jiwei reinforces our view.
15 April 2013
First Insights: China: Minister of Finance indicates policy easing unlikely
The surprisingly weak Q1 GDP data in China have led to the important question: will the government loosen policy to stimulate the economy as it did in 2009 and 2012? We believe policy easing is not likely. An article published today by the newly-elected Minister of Finance Lou Jiwei reinforces our view.
SBA 504 Loan
SBA 504 Loan
The US Small Business Administration 504 Loan or Certified Development Company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates.[1] As part of its mission to promote the development of businesses, the SBA offers a number of different loan programs tailored to specific capital needs of growing businesses. The 504 program works by distributing the loan among three parties. The business owner puts a minimum of 10%, a conventional lender (typically a bank) puts up 50%, and a so-called Certified Development Company (CDC) puts up the remaining 40%. Certified Development Companies are established under the 504 code as non-profit corporations set up to support economic growth in their local areas. There are a few hundred such CDCs nationwide.[2] The maximum amount of the loan is $5 million ($5 million for meeting SBA-defined policy goals, and $5.5 million for manufacturers and some energy-related policy goals), and if the borrower defaults, the private sector lender is paid off first, reducing the risk to the lender and encouraging loans.
Eligibility
In order to qualify for the program, the borrower must meet the SBA's definition of small business and must plan to use over half (51%) of the property for its own operations within one year of ownership; if the building is to be newly constructed the borrower must use 60% at once and plan to occupy 80%. The borrower may form a real-estate holding company that lease 100% to the operating business, which then subleases surplus space (up to 49%). To qualify for this program, U.S. citizens or permanent residents must hold a majority of the ownership of the operating companies and the holding company.[3] As of 2009, the 504 Loan does not contain any restrictions or ceilings; however, there are three criteria for eligibility:[4]
- The company's average net income cannot surpass $5 million after taxes for the preceding two years.
- The anticipated project size must be greater than the personal, non-retirement, unencumbered liquid assets of the guarantors/principals.
- Does not have a tangible net worth in excess of $15 million.
Structure
There are three partners in an SBA 504 loan—the borrower, a bank or other regulated lender, and a CDC. Typically the borrower must contribute 10% of the total project cost; their bank lends 50% at their own rate and term (as long as the term is at least 10 years), and has a first lien on the assets being financed; and the CDC lends 40%, with a second lien. If the financing is for real estate, as most 504 loans are, the CDC's loan is for twenty years at a fixed rate of interest. The fully amortized rate for loans funding in August 2010 was 4.931%. The funds for these loans are raised through a monthly auction of bonds that are 100% guaranteed by the U.S. Government. If the financing is for long-lasting fixed equipment such as printing presses, commercial laundry equipment, manufacturing equipment, etc., the 504 loan term is 10 years.
If the borrower's company has less than two consecutive years of operating history or if the building or assets to be financed are considered "special purpose" (e.g., gas stations or some medical clinics), the borrower must increase their contribution by 5% for a total of 15%, and the CDC lends 5% less for a total of 35%-- in cases where the borrowers meet both of these conditions, they must increase to 20%, and the CDC lends 30%.
Total project costs can include the costs for land and existing building or equipment; hard construction/renovation; fixtures and equipment; certain furniture; professional fees including appraisals and environmental investigations; soft costs; and closing costs. Project costs can usually be financed in their entirety with a 504 loan, whereas most commercial bank loans only finance a percentage of the purchase price/appraised value and borrowers would have to come up with closing and soft costs out of pocket. If borrowers later decide to sell their property, 504 loans are assumable.
References
[1]^ Vance, David E. (2005). Raising Capital. Springer. p. 64. ISBN 978-0-387-25319-0.
[2]^ Tyson, Eric; Jim Schell (2008). Small Business for Dummies (3 ed.). Wiley. p. 88. ISBN 978-0-470-17747-1.
[3]^ http://sba.gov/
[4]^ http://www.sba.gov/financialassistance/borrowers/guaranteed/CDC504lp/index.htm
External links
CDC/504 loan program at the SBA
The Small Business Administration's Website
http://en.wikipedia.org/wiki/SBA_504_Loan
The US Small Business Administration 504 Loan or Certified Development Company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates.[1] As part of its mission to promote the development of businesses, the SBA offers a number of different loan programs tailored to specific capital needs of growing businesses. The 504 program works by distributing the loan among three parties. The business owner puts a minimum of 10%, a conventional lender (typically a bank) puts up 50%, and a so-called Certified Development Company (CDC) puts up the remaining 40%. Certified Development Companies are established under the 504 code as non-profit corporations set up to support economic growth in their local areas. There are a few hundred such CDCs nationwide.[2] The maximum amount of the loan is $5 million ($5 million for meeting SBA-defined policy goals, and $5.5 million for manufacturers and some energy-related policy goals), and if the borrower defaults, the private sector lender is paid off first, reducing the risk to the lender and encouraging loans.
Eligibility
In order to qualify for the program, the borrower must meet the SBA's definition of small business and must plan to use over half (51%) of the property for its own operations within one year of ownership; if the building is to be newly constructed the borrower must use 60% at once and plan to occupy 80%. The borrower may form a real-estate holding company that lease 100% to the operating business, which then subleases surplus space (up to 49%). To qualify for this program, U.S. citizens or permanent residents must hold a majority of the ownership of the operating companies and the holding company.[3] As of 2009, the 504 Loan does not contain any restrictions or ceilings; however, there are three criteria for eligibility:[4]
- The company's average net income cannot surpass $5 million after taxes for the preceding two years.
- The anticipated project size must be greater than the personal, non-retirement, unencumbered liquid assets of the guarantors/principals.
- Does not have a tangible net worth in excess of $15 million.
Structure
There are three partners in an SBA 504 loan—the borrower, a bank or other regulated lender, and a CDC. Typically the borrower must contribute 10% of the total project cost; their bank lends 50% at their own rate and term (as long as the term is at least 10 years), and has a first lien on the assets being financed; and the CDC lends 40%, with a second lien. If the financing is for real estate, as most 504 loans are, the CDC's loan is for twenty years at a fixed rate of interest. The fully amortized rate for loans funding in August 2010 was 4.931%. The funds for these loans are raised through a monthly auction of bonds that are 100% guaranteed by the U.S. Government. If the financing is for long-lasting fixed equipment such as printing presses, commercial laundry equipment, manufacturing equipment, etc., the 504 loan term is 10 years.
If the borrower's company has less than two consecutive years of operating history or if the building or assets to be financed are considered "special purpose" (e.g., gas stations or some medical clinics), the borrower must increase their contribution by 5% for a total of 15%, and the CDC lends 5% less for a total of 35%-- in cases where the borrowers meet both of these conditions, they must increase to 20%, and the CDC lends 30%.
Total project costs can include the costs for land and existing building or equipment; hard construction/renovation; fixtures and equipment; certain furniture; professional fees including appraisals and environmental investigations; soft costs; and closing costs. Project costs can usually be financed in their entirety with a 504 loan, whereas most commercial bank loans only finance a percentage of the purchase price/appraised value and borrowers would have to come up with closing and soft costs out of pocket. If borrowers later decide to sell their property, 504 loans are assumable.
References
[1]^ Vance, David E. (2005). Raising Capital. Springer. p. 64. ISBN 978-0-387-25319-0.
[2]^ Tyson, Eric; Jim Schell (2008). Small Business for Dummies (3 ed.). Wiley. p. 88. ISBN 978-0-470-17747-1.
[3]^ http://sba.gov/
[4]^ http://www.sba.gov/financialassistance/borrowers/guaranteed/CDC504lp/index.htm
External links
CDC/504 loan program at the SBA
The Small Business Administration's Website
http://en.wikipedia.org/wiki/SBA_504_Loan
Sunday, April 14, 2013
Don’t Pay Too Much for That Bordeaux - Or That Bond
VIEWPOINTS
April 2013
Don’t Pay Too Much for That Bordeaux - Or That Bond
Jeff Helsing
• The financial market’s reliance on ratings agencies and benchmarks, along with regulations, can cause distortions in the value of some securities.
• These price distortions can create potential opportunities for some investors.
• Investors should consider aligning capital allocation with outcome-oriented objectives that aren’t influenced by credit ratings or benchmarks.
http://www.pimco.com/EN/Insights/Pages/Dont-Pay-Too-Much-for-That-Bordeaux-Or-That-Bond.aspx
April 2013
Don’t Pay Too Much for That Bordeaux - Or That Bond
Jeff Helsing
• The financial market’s reliance on ratings agencies and benchmarks, along with regulations, can cause distortions in the value of some securities.
• These price distortions can create potential opportunities for some investors.
• Investors should consider aligning capital allocation with outcome-oriented objectives that aren’t influenced by credit ratings or benchmarks.
http://www.pimco.com/EN/Insights/Pages/Dont-Pay-Too-Much-for-That-Bordeaux-Or-That-Bond.aspx
Friday, April 12, 2013
National SERI Report 2013
http://www.studley.com/research-documents-search-results.htm?t=SERI Reports
National SERI Report 2013
The Studley Effective Rent Index (SERI) provides the real estate industry with the only comprehensive, in-depth study of effective rental rate trends for prime Class A office properties in the nation’s major central business districts and selected suburban markets. Using completed transactions as its source, the SERI report offers “real world” numbers that reflect negotiated terms, including lease concessions and operating-expense information. This study focuses on the true cost of occupancy based on actual taking rents rather than on average asking rents.
http://www.studley.com/research-documents-search-results.htm?t=SERI Reports
National SERI Report 2013
The Studley Effective Rent Index (SERI) provides the real estate industry with the only comprehensive, in-depth study of effective rental rate trends for prime Class A office properties in the nation’s major central business districts and selected suburban markets. Using completed transactions as its source, the SERI report offers “real world” numbers that reflect negotiated terms, including lease concessions and operating-expense information. This study focuses on the true cost of occupancy based on actual taking rents rather than on average asking rents.
http://www.studley.com/research-documents-search-results.htm?t=SERI Reports
Chile
Chile
In a broadly neutral statement – and as expected – the Central Bank of Chile (BCCh) kept its policy rate unchanged at 5.0%. The board maintained its data-dependent stance and further reinforced our call for the bank to remain on hold for the foreseeable future.
In a broadly neutral statement – and as expected – the Central Bank of Chile (BCCh) kept its policy rate unchanged at 5.0%. The board maintained its data-dependent stance and further reinforced our call for the bank to remain on hold for the foreseeable future.
German Real Estate Monitor
Commerzbank Corporates & Markets
Economic Research
https://research.commerzbank.com
Economic Insight
German Real Estate Monitor
Residential property prises are rising strongly in German cities. We consider which house price indices are worth looking at and which indicators may warn of possible overheating of the market. The property market should continue to revive in the next few years, above all due to low interest rates. Even though a property bubble is less likely in Germany than it was in Spain or Ireland, the ECB’s long-standing expansionary monetary policy, maintained for the sake of the peripheral countries, poses significant long-term risks.
Analyst:
Ulrike Rondorf
For important disclosure information, please see https://research.commerzbank.com/portal/en/site/equity/disclaimer_1/index.jsf
Economic Research
https://research.commerzbank.com
Economic Insight
German Real Estate Monitor
Residential property prises are rising strongly in German cities. We consider which house price indices are worth looking at and which indicators may warn of possible overheating of the market. The property market should continue to revive in the next few years, above all due to low interest rates. Even though a property bubble is less likely in Germany than it was in Spain or Ireland, the ECB’s long-standing expansionary monetary policy, maintained for the sake of the peripheral countries, poses significant long-term risks.
Analyst:
Ulrike Rondorf
For important disclosure information, please see https://research.commerzbank.com/portal/en/site/equity/disclaimer_1/index.jsf
Quiet Start to 2013 for Central London Office Market
Quiet Start to 2013 for Central London Office Market
11 April 2013
Figures released today in Capita Symonds’ ‘Central London Overview Q1 Report’ show that the central London office market got off to a quiet start in 2013.
http://www.capitasymonds.co.uk/news__events/latest_news/quiet_start_to_2013_for_centra.aspx
11 April 2013
Figures released today in Capita Symonds’ ‘Central London Overview Q1 Report’ show that the central London office market got off to a quiet start in 2013.
http://www.capitasymonds.co.uk/news__events/latest_news/quiet_start_to_2013_for_centra.aspx
Thursday, April 11, 2013
Business, Lee Iacocca
- Lee Iacocca (1924- )
I constantly ask myself what the most important aspect in business is; Is it strategy, marketing, human resources or skill? Other than that, there are cultural significance, brand power and quality- which are also essential requirements to running a successful business. However, nowadays, I find myself appreciating the importance of human resources more- what do you think?
Wednesday, April 10, 2013
Poland: MPC dovish on economy and inflation, but in denial that swift rate cuts are needed
Poland: MPC dovish on economy and inflation, but in denial that swift rate cuts are needed
Michal Dybula - Market Economics | 10 Apr 2013 16:06
The MPC left interest rates unchanged, in line with expectations. While the post-meeting statement highlighted the weakness of the economy and major disinflation, the Council made also clear that its upcoming decision will depend on the probability of inflation remaining considerably below the inflation target over the medium-run.
Michal Dybula - Market Economics | 10 Apr 2013 16:06
The MPC left interest rates unchanged, in line with expectations. While the post-meeting statement highlighted the weakness of the economy and major disinflation, the Council made also clear that its upcoming decision will depend on the probability of inflation remaining considerably below the inflation target over the medium-run.
Tuesday, April 9, 2013
Melbourne Office Vacancies to Surge on Glut, Morgan Stanley Says
Melbourne Office Vacancies to Surge on Glut, Morgan Stanley Says
By Nichola Saminather - Apr 8, 2013
Melbourne’s office vacancy rate will jump to about 11 percent this year from about 8 percent now, as supply outpaces demand, Morgan Stanley said.
http://www.bloomberg.com/news/2013-04-08/melbourne-office-vacancies-to-surge-on-glut-morgan-stanley-says.html
By Nichola Saminather - Apr 8, 2013
Melbourne’s office vacancy rate will jump to about 11 percent this year from about 8 percent now, as supply outpaces demand, Morgan Stanley said.
http://www.bloomberg.com/news/2013-04-08/melbourne-office-vacancies-to-surge-on-glut-morgan-stanley-says.html
Melbourne office market joins high rise glut
Melbourne office market joins high rise glut
Posted by Unconventional Economist in Australian Property, Featured Article
on April 8, 2013 |
By Leith van Onselen
This blog has spent a lot of time highlighting the looming oversupply of apartments facing Melbourne. Well, it appears that the office market is facing similar conditions, with Morgan Stanley today releasing research pointing to a big ramp-up in office construction and office vacancy rates over the next couple of years:
http://www.macrobusiness.com.au/2013/04/melbourne-office-market-joins-high-rise-glut/
Posted by Unconventional Economist in Australian Property, Featured Article
on April 8, 2013 |
By Leith van Onselen
This blog has spent a lot of time highlighting the looming oversupply of apartments facing Melbourne. Well, it appears that the office market is facing similar conditions, with Morgan Stanley today releasing research pointing to a big ramp-up in office construction and office vacancy rates over the next couple of years:
http://www.macrobusiness.com.au/2013/04/melbourne-office-market-joins-high-rise-glut/
Monday, April 8, 2013
Kidder Mathews: San Francisco Office Market – 1st Quarter 2013
http://news.theregistrysf.com/kidder-mathews-san-francisco-office-market-1st-quarter-2013/
Kidder Mathews: San Francisco Office Market – 1st Quarter 2013
Posted on April 8, 2013 by publisher in News Releases Market Overview
Vacancy: DOWN from 9.5% to 9.2%
Net Absorption: UP 367,259
Average Asking Rental Rates: UP from $38.17 to $39.02
New Office Construction: UP
Notable Lease Transactions
1.101 Spear, Salesforce.com, 228,721 s.f.
2.1455 Market, Square Inc, 85,111 s.f.
3.760 Market, Obvious Corporation, 75,000 s.f.
4.60 Spear St, Rodan+Fields, 62,524 s.f.
5.1 Market, McKenna, Long & Aldridge, 42,288 s.f. (sublease)
Kidder Mathews: San Francisco Office Market – 1st Quarter 2013
Posted on April 8, 2013 by publisher in News Releases Market Overview
Vacancy: DOWN from 9.5% to 9.2%
Net Absorption: UP 367,259
Average Asking Rental Rates: UP from $38.17 to $39.02
New Office Construction: UP
Notable Lease Transactions
1.101 Spear, Salesforce.com, 228,721 s.f.
2.1455 Market, Square Inc, 85,111 s.f.
3.760 Market, Obvious Corporation, 75,000 s.f.
4.60 Spear St, Rodan+Fields, 62,524 s.f.
5.1 Market, McKenna, Long & Aldridge, 42,288 s.f. (sublease)
2013 | Q1 San Francisco Office Report
http://www.colliers.com/en-us/sanfrancisco/insights
2013 | Q1 San Francisco Office Report >>
After a record setting 2012, San Francisco started 2013 with a strong first quarter. The global economy continued to bounce back and San Francisco remains ahead of the pack as job growth and increased productivity due to technology enhancements have benefitted the office market. The first quarter marked the eleventh consecutive quarter of positive net absorption and vacancy is hovering at 10 percent citywide. Even more encouraging is the 1.2 million square feet of ground up office development currently under construction, driven by the city’s increased employment and leasing volume over the last 24 months.
http://www.colliers.com/en-us/sanfrancisco/insights
2013 | Q1 San Francisco Office Report >>
After a record setting 2012, San Francisco started 2013 with a strong first quarter. The global economy continued to bounce back and San Francisco remains ahead of the pack as job growth and increased productivity due to technology enhancements have benefitted the office market. The first quarter marked the eleventh consecutive quarter of positive net absorption and vacancy is hovering at 10 percent citywide. Even more encouraging is the 1.2 million square feet of ground up office development currently under construction, driven by the city’s increased employment and leasing volume over the last 24 months.
http://www.colliers.com/en-us/sanfrancisco/insights
Eco Analysis - February German IP expands by 0.5% (H. Amourda)
Eco Analysis - February German IP expands by 0.5% (H. Amourda)
Only a few key economic data were released this Monday. German Industrial production expanded by 0.5% mom in February, while the number for January was revised down markedly. For Q1, growth in industrial production is likely to be around 0, up with Q4, when it fell by 2.6% qoq. Based on a stronger recovery in private consumption, we still expect a robust rebound in GDP in Q1. In the euro area, the April Sentix investor survey fell further from -10.6 in March to -17.3. We now look forward the bulk of European IP data set to be released this week.
Following the stronger than expected factory orders last week, at 2.3% mom, February industrial production surprised on the upside as well. Indeed, the industrial production printed at 0.5% mom (cons: 0.3). Looking at the components, the construction sector contracted by 2.7% mom, possibly affected by poor weather conditions. The Bundesbank report shows some pressures from the energy component which rose from -0.4% mom to 3.9% mom in February, while the manufacturing component increased as well by 0.5% mom from -1.1% mom. Also noteworthy, the January figure was revised down from 0% mom to -0.6% mom. Looking ahead, our scenario remains for a technical rebound in GDP growth in Q1 2013.
Only a few key economic data were released this Monday. German Industrial production expanded by 0.5% mom in February, while the number for January was revised down markedly. For Q1, growth in industrial production is likely to be around 0, up with Q4, when it fell by 2.6% qoq. Based on a stronger recovery in private consumption, we still expect a robust rebound in GDP in Q1. In the euro area, the April Sentix investor survey fell further from -10.6 in March to -17.3. We now look forward the bulk of European IP data set to be released this week.
Following the stronger than expected factory orders last week, at 2.3% mom, February industrial production surprised on the upside as well. Indeed, the industrial production printed at 0.5% mom (cons: 0.3). Looking at the components, the construction sector contracted by 2.7% mom, possibly affected by poor weather conditions. The Bundesbank report shows some pressures from the energy component which rose from -0.4% mom to 3.9% mom in February, while the manufacturing component increased as well by 0.5% mom from -1.1% mom. Also noteworthy, the January figure was revised down from 0% mom to -0.6% mom. Looking ahead, our scenario remains for a technical rebound in GDP growth in Q1 2013.
Turkey: Gradual recovery in IP
Turkey: Gradual recovery in IP
At 1.6% y/y, February’s industrial production (IP) index was slightly below the market consensus and our expectation of 2%. On a seasonally and calendar adjusted basis, IP increased by 1.5% m/m, following a rise of 2.4% m/m in January and offset the 3.5% m/m contraction in December. The weaker-than-expected IP data in February hint that the economic recovery is likely to be gradual and slower than envisaged, despite the CBRT’s monetary easing. Yet, we expect the pickup in the manufacturing activity to become more visible in Q2, as suggested by the strong pace of credit growth and above 50 PMI readings.
At 1.6% y/y, February’s industrial production (IP) index was slightly below the market consensus and our expectation of 2%. On a seasonally and calendar adjusted basis, IP increased by 1.5% m/m, following a rise of 2.4% m/m in January and offset the 3.5% m/m contraction in December. The weaker-than-expected IP data in February hint that the economic recovery is likely to be gradual and slower than envisaged, despite the CBRT’s monetary easing. Yet, we expect the pickup in the manufacturing activity to become more visible in Q2, as suggested by the strong pace of credit growth and above 50 PMI readings.
Sunday, April 7, 2013
Chile: Feeble February Growth
Chile: Feeble February Growth
Nader Nazmi - Market Economics
Latam Macro Snapshot | 05 Apr 2013 |
Growth of real GDP, as measured by its monthly proxy Imacec, decelerated from 6.5% y/y in January to 3.8% y/y in February. This is in line with our 3.9% y/y forecasts but falls well short of the 4.8% y/y median estimate from the Bloomberg survey.
Nader Nazmi - Market Economics
Latam Macro Snapshot | 05 Apr 2013 |
Growth of real GDP, as measured by its monthly proxy Imacec, decelerated from 6.5% y/y in January to 3.8% y/y in February. This is in line with our 3.9% y/y forecasts but falls well short of the 4.8% y/y median estimate from the Bloomberg survey.
Friday, April 5, 2013
Texas Refinery Is Saudi Foothold in U.S. Market
Texas Refinery Is Saudi Foothold in U.S. Market
Published: Friday, 5 Apr 2013 | 9:21 AM ET
By: By Clifford Krauss
PORT ARTHUR, Tex. — It is hard to imagine the desert sands of the Persian Gulf being any farther away than from this swampy refinery port known for Cajun food, sport fishing and being the birthplace of Janis Joplin.
But right in the middle of town stands a strategic outpost for Saudi Arabia's global ambitions, although one that the Saudis appear loath to publicize.
http://www.cnbc.com/id/100618028
Published: Friday, 5 Apr 2013 | 9:21 AM ET
By: By Clifford Krauss
PORT ARTHUR, Tex. — It is hard to imagine the desert sands of the Persian Gulf being any farther away than from this swampy refinery port known for Cajun food, sport fishing and being the birthplace of Janis Joplin.
But right in the middle of town stands a strategic outpost for Saudi Arabia's global ambitions, although one that the Saudis appear loath to publicize.
http://www.cnbc.com/id/100618028
Investment opportunities in debt fund strategies
Investment opportunities in debt fund strategies
Thu, 04/04/2013 - 11:13
Download the special report Investment opportunities in debt fund strategies
BNP Paribas
By James Williams – Prior to the global financial crisis the ability for European corporates to finance themselves via leveraged loans was dominated by a prevalence of collateralised loan obligations (CLOs): in 2007, at its peak, the CLO market bought up two thirds of the USD166billion of leveraged loans issued that year, according to ratings agency Standard & Poor’s.
http://www.hedgeweek.com/2013/04/04/182608/investment-opportunities-debt-fund-strategies
Thu, 04/04/2013 - 11:13
Download the special report Investment opportunities in debt fund strategies
BNP Paribas
By James Williams – Prior to the global financial crisis the ability for European corporates to finance themselves via leveraged loans was dominated by a prevalence of collateralised loan obligations (CLOs): in 2007, at its peak, the CLO market bought up two thirds of the USD166billion of leveraged loans issued that year, according to ratings agency Standard & Poor’s.
http://www.hedgeweek.com/2013/04/04/182608/investment-opportunities-debt-fund-strategies
Thursday, April 4, 2013
US Hears Footsteps of Global Challengers in NatGas Boom
US Hears Footsteps of Global Challengers in NatGas Boom
Published: Thursday, 4 Apr 2013 | 2:15 PM ET
By: Javier E. David
Special to CNBC.com
The United States, currently one of the world's largest sources of natural gas, may find itself fending off increasingly stiff competition in the resource's development, as the move to tap natural gas supplies goes global.
http://www.cnbc.com/id/100617228
Published: Thursday, 4 Apr 2013 | 2:15 PM ET
By: Javier E. David
Special to CNBC.com
The United States, currently one of the world's largest sources of natural gas, may find itself fending off increasingly stiff competition in the resource's development, as the move to tap natural gas supplies goes global.
http://www.cnbc.com/id/100617228
Wednesday, April 3, 2013
San Francisco SERI Report 2013
http://www.studley.com/research-documents-search-results.htm?l=San Francisco
San Francisco SERI Report 2013
Total rent, $58.35, posted a 4.7% year-on-year increase. Net rent rose for the second year in a row, averaging $38.00. Electricity (+1.5%), real estate taxes (+2.0%) and operating expenses (+2.1%) all increased.
http://www.studley.com/research-documents-search-results.htm?l=San Francisco
San Francisco SERI Report 2013
Total rent, $58.35, posted a 4.7% year-on-year increase. Net rent rose for the second year in a row, averaging $38.00. Electricity (+1.5%), real estate taxes (+2.0%) and operating expenses (+2.1%) all increased.
http://www.studley.com/research-documents-search-results.htm?l=San Francisco
The United States of Oil (12 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
12 of 12
Millions of Barrels
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide12
By John Lippert - Apr 2, 2013
12 of 12
Millions of Barrels
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide12
The United States of Oil (11 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
11 of 12
In the Zone
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide11
By John Lippert - Apr 2, 2013
11 of 12
In the Zone
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide11
The United States of Oil (10 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
10 of 12
From Ranch to Oilfield
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide10
By John Lippert - Apr 2, 2013
10 of 12
From Ranch to Oilfield
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide10
Pimco's Bill Gross Looks at the Man in the Mirror
Pimco's Bill Gross Looks at the Man in the Mirror
Published: Wednesday, 3 Apr 2013 | 10:08 AM ET
By: John Carney
Senior Editor, CNBC.com
When Bill Gross looks in the mirror, what does he see?
In his latest monthly "Investment Outlook" commentary, the Pimco chief waxes philosophical. He questions whether he and other legendary investors are really all they're cracked up to be. Maybe guys like Warren Buffett, George Soros, and Ray Dalio were just lucky guys in the right place at the right time.
http://www.cnbc.com/id/100612898
Published: Wednesday, 3 Apr 2013 | 10:08 AM ET
By: John Carney
Senior Editor, CNBC.com
When Bill Gross looks in the mirror, what does he see?
In his latest monthly "Investment Outlook" commentary, the Pimco chief waxes philosophical. He questions whether he and other legendary investors are really all they're cracked up to be. Maybe guys like Warren Buffett, George Soros, and Ray Dalio were just lucky guys in the right place at the right time.
http://www.cnbc.com/id/100612898
The United States of Oil (9 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
9 of 12
Texas-Sized Potential
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide9
By John Lippert - Apr 2, 2013
9 of 12
Texas-Sized Potential
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide9
The United States of Oil (8 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
8 of 12
Boosting Yield
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide8
By John Lippert - Apr 2, 2013
8 of 12
Boosting Yield
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide8
The United States of Oil (7 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
7 of 12
Separating the Mixture
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide7
By John Lippert - Apr 2, 2013
7 of 12
Separating the Mixture
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide7
The United States of Oil (6 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
6 of 12
Operating Around the Clock
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide6
By John Lippert - Apr 2, 2013
6 of 12
Operating Around the Clock
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide6
How BP Is Joining Big Oil Retreat From Renewals
How BP Is Joining Big Oil Retreat From Renewals
Published: Wednesday, 3 Apr 2013 | 5:21 AM ET
BP has put its U.S. wind farm operation, one of the largest in the country, up for sale, marking the continued retreat of big oil companies from renewable energy investments while oil and gas projects offer them better returns.
http://www.cnbc.com/id/100611993
Published: Wednesday, 3 Apr 2013 | 5:21 AM ET
BP has put its U.S. wind farm operation, one of the largest in the country, up for sale, marking the continued retreat of big oil companies from renewable energy investments while oil and gas projects offer them better returns.
http://www.cnbc.com/id/100611993
The United States of Oil (5 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
5 of 12
The Business of CO2
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide5
By John Lippert - Apr 2, 2013
5 of 12
The Business of CO2
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide5
The United States of Oil (4 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
4 of 12
Targeting Deep Oil
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide4
By John Lippert - Apr 2, 2013
4 of 12
Targeting Deep Oil
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide4
The United States of Oil (3 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
3 of 12
Priming the Permian Basin
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide3
By John Lippert - Apr 2, 2013
3 of 12
Priming the Permian Basin
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide3
The United States of Oil (2 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
2 of 12
Capturing Carbon
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide2
By John Lippert - Apr 2, 2013
2 of 12
Capturing Carbon
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide2
The United States of Oil (1 of 12)
The United States of Oil
By John Lippert - Apr 2, 2013
1 of 12
Energy Upheaval
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide1
By John Lippert - Apr 2, 2013
1 of 12
Energy Upheaval
http://www.bloomberg.com/slideshow/2013-04-02/the-united-states-of-oil.html#slide1
Tuesday, April 2, 2013
Chile: IPoM – Life is Good, Why Change?
Chile: IPoM – Life is Good, Why Change?
Nader Nazmi - Market Economics
Latam Macro Snapshot | 02 Apr 2013 17:11 |
The Monetary Policy Report (IPoM) released today makes it clear that the central bank (BCCh) will remain on hold for the foreseeable future as it expects trend growth and on-target inflation. The base scenario is as good as it gets but the BCCh remains mindful of risks. Nothing lasts forever. The IPoM’s key conclusions are supportive of our view that BCCh will remain on hold this year.
Nader Nazmi - Market Economics
Latam Macro Snapshot | 02 Apr 2013 17:11 |
The Monetary Policy Report (IPoM) released today makes it clear that the central bank (BCCh) will remain on hold for the foreseeable future as it expects trend growth and on-target inflation. The base scenario is as good as it gets but the BCCh remains mindful of risks. Nothing lasts forever. The IPoM’s key conclusions are supportive of our view that BCCh will remain on hold this year.
Monday, April 1, 2013
Chile: All Reasons Lead to a Longer Pause
Chile: All Reasons Lead to a Longer Pause
Nader Nazmi - Market Economics
Latam Macro Snapshot | 01 Apr 2013 21:13 |
According to the minutes of the 14 March monetary policy meeting, there are good reasons to cut and there are good reasons to hike. But, on balance, all reasons lead to a longer pause.
Nader Nazmi - Market Economics
Latam Macro Snapshot | 01 Apr 2013 21:13 |
According to the minutes of the 14 March monetary policy meeting, there are good reasons to cut and there are good reasons to hike. But, on balance, all reasons lead to a longer pause.
How the US Oil, Gas Boom Could Shake Up Global Order
How the US Oil, Gas Boom Could Shake Up Global Order
Published: Monday, 1 Apr 2013 | 11:28 AM ET
By: Richard Engel and Robert Windrem, NBC News
Without fanfare, China passed the United States in December to become the world's leading importer of oil—the first time in nearly 40 years that the U.S. didn't own that dubious distinction. That same month, North Dakota, Ohio and Pennsylvania together produced 1.5 million barrels of oil a day—more than Iran exported.
http://www.cnbc.com/id/100606163
Published: Monday, 1 Apr 2013 | 11:28 AM ET
By: Richard Engel and Robert Windrem, NBC News
Without fanfare, China passed the United States in December to become the world's leading importer of oil—the first time in nearly 40 years that the U.S. didn't own that dubious distinction. That same month, North Dakota, Ohio and Pennsylvania together produced 1.5 million barrels of oil a day—more than Iran exported.
http://www.cnbc.com/id/100606163
Chile – This week’s data would reflect soft activity in February. Focus will be on BCCh publications.
Chile – This week’s data would reflect soft activity in February. Focus will be on BCCh publications.
CHILE
Manufacturing output and retail sales growth decelerated in February, and the unemployment rate edged up two ticks to 6.2%. February data are providing partial evidence that the slowdown in activity from unsustainable levels that the central bank has been anticipating (and hoping for) may finally be happening. As such, they reduce the likelihood that monetary tightening will be required in the months ahead to cool the economy.
CHILE
Manufacturing output and retail sales growth decelerated in February, and the unemployment rate edged up two ticks to 6.2%. February data are providing partial evidence that the slowdown in activity from unsustainable levels that the central bank has been anticipating (and hoping for) may finally be happening. As such, they reduce the likelihood that monetary tightening will be required in the months ahead to cool the economy.
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