Latest news with #CushmanandWakefield
Los Angeles Times
24-05-2025
- Business
- Los Angeles Times
Pushing more Americans into homelessness is no way to revitalize downtowns
The first couple of years of the Reagan administration were rough on most Americans. His 1981 cuts to safety net programs led to an additional 6 million people falling into poverty between 1980 and 1983. Coupled with an unemployment of nearly 11% during his first term, Reagan ended up raising taxes more than 10 times during his presidency to try to clean up the mess his 1981 cuts made. However, elements of that economic devastation continue to haunt us today. One of the most obvious examples is the explosion of homeless encampments in the nation's downtowns, which began during Reagan's presidency and led to the first federal legislative response to homelessness, in 1987. Here we are nearly four decades later: The country has its highest number of homeless people since tracking began, and House Republicans just voted to cut safety programs. It's as if those Reagan years taught them nothing about cause and effect. Yes, we have a $36-trillion national debt, and Moody's just downgraded our credit rating. We have to draw in the purse strings for the sake of our fiscal stability. But it matters where you make the cuts. Creating a scenario that could increase poverty and homelessness is wildly counterproductive. Even setting aside for the moment the human costs, the economic case for reducing homelessness is painfully clear. The commercial real estate value of our downtowns is eroded by vacancies, with Downtown L.A. suffering a rate of more than 30%, according to a recent Cushman and Wakefield analysis. And that wealth is going to continue to flee downtown because people avoid downtown. Why? Safety concerns. Something about seeing a bunch of boarded-up buildings and tents on the streets doesn't feel comforting. A federal budget crafted to crush the most vulnerable people will push countless Americans out of their precarious housing and onto the streets. The Republicans' vision will create more encampments — certainly no way to address the public's safety concerns or revitalize downtowns. It's impossible to make America great without first taking care of her people — all of her people. All the fancy strip malls in the suburban world won't change that. In Downtown L.A. in 1983, Bullock's at 7th Street and Broadway shuttered its doors. That same year, Gimbels in New York said goodbye. And in my hometown of Detroit, the vast Hudson's — second in size only to Macy's in New York — also closed. That wasn't just a reflection of changing shopping habits. That was also a microcosm of the economic erosion that was plaguing the heart of our cultural hubs after those devastating budget cuts in 1981. A municipality's best architecture is often downtown. The best historic buildings are near courthouses and Main Streets. When America cared about its downtowns, entire cities and states thrived. We can't afford to give up on our urban centers. Local officials get that; cities perennially float plans and tweak policies in the hope of revitalizing these areas. But before elected officials focus on removing red tape from acquiring liquor licenses or offering tax breaks to would-be developers, they must help the people sleeping on the streets in front of the buildings that cities want to reopen. Until that happens, the economic potential of our downtowns will stay in limbo. Californians take this risk seriously. Assemblymember Matt Haney (D-San Francisco) is spearheading a multilayered initiative to revitalize struggling downtowns across California since the pandemic. For more than a year he's met with mayors and other leaders from nine cities to identify the barriers to a thriving downtown. This week Haney, who chairs the Assembly's Downtown Recovery Committee, announced a package with 13 initiatives designed to bring life back to civic centers. Three of them specifically target homelessness. As far as I'm concerned, those are the only three that matter. If the public sector can get people off the streets and into shelters, the private sector will do the rest. 'I think that the cities now have the tools and the legal clarity to effectively address encampments,' Haney told me this week. 'They can clear persistent encampments, but they also need to have places for people to go.' That last point cannot be ignored. 'Cities now are more focused on those short-term shelters and transitional housing and ensuring there are adequate placements,' he said — a crucial component given that last summer the Supreme Court endorsed the power of cities in California and the West to break up encampments, and this month Gov. Gavin Newsom has made that tactic a talking point. 'What we don't want to see is just clearing an encampment so that people then get up and move two blocks away,' Haney added. 'Nor does it make much sense to spend money to put somebody in jail solely because they're homeless. That's not going to be a solution.' His take is that the top priority for the state government and for mayors should be funding for 'homelessness response, which really is focused on being able to remove encampments and get people inside.' Obviously that's easier said than done. But if that isn't done, nothing else will work. Unhoused people will have no path out of homelessness, and our downtowns will continue their death spiral. @LZGranderson
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Business Standard
23-04-2025
- Business
- Business Standard
Office completions dip 13% due to delays in OCs, project timelines: Report
New office completions across India's top eight office markets fell 13 per cent year-on-year (Y-o-Y) in the first quarter (Q1) of 2025 to 10.7 million square feet (msf), down from 12.2 msf recorded during the same period in 2024, according to a report by real estate services firm Cushman and Wakefield. The report attributed the drop to delays in obtaining occupancy certifications (OC), which pushed project timelines. An OC is a legal document issued by local authorities certifying that a building complies with approved plans and safety norms, and is suitable for occupancy. Among the top eight cities, Bengaluru, Pune and Delhi NCR together contributed 9.2 msf — or 92 per cent — of new office supply in the quarter. In contrast, cities like Chennai, Kolkata and Ahmedabad recorded no new completions, leading to lower vacancy rates and higher rentals in these markets. 'Supply constraints and strong occupier demand in the first quarter of the year across India's top eight office markets have resulted in a drop in the vacancy rate by 55 basis points to 15.7 per cent, from 16.25 per cent in Q4 2024,' the report stated. Most cities, except Bengaluru and Pune, reported a decline in vacancy as supply lagged demand. Despite new additions, robust leasing and limited supply in most markets further tightened vacancies, with the office real estate market recording a decline in vacancy rates for a seventh consecutive quarter. Office leasing activity remained strong, with gross leasing volume (GLV) across the top eight markets rising 5 per cent Y-o-Y to 20.3 msf in Q1 2025. 'Fresh leasing made up nearly 80 per cent of the activity this quarter, marking the third consecutive quarter of this trend and pointing to sustained occupier expansion,' the report noted. Similarly, net absorption — or the volume of newly occupied office space — increased by 20 per cent Y-o-Y in Q1 2025 to 13.4 msf. Delhi NCR, Mumbai and Bengaluru collectively accounted for 63 per cent of this total. The first quarter of 2025 also recorded the third-highest quarterly net absorption on record. By sector, the IT-BPM (information technology-business process management) segment retained its position as the largest occupier of office space, accounting for 29 per cent of GLV. This was followed by banking, financial services and insurance (BFSI) at 22 per cent, while flex space operators maintained a steady 13 per cent share. Global capability centres (GCCs) increased their share to 31 per cent, up from 28 per cent in 2024. Commenting on the office market's future outlook, Anshul Jain, chief executive, India, SEA and APAC tenant representation, said: 'While we remain watchful of evolving global economic conditions, India's position as the global hub for technology, research and development, and innovation continues to strengthen.' 'The strong performance of the GCC segment, now contributing over 30 per cent of gross leasing, underscores this confidence, and we expect this trajectory to continue with more greenfield entries and expansion mandates,' he added. He further noted that domestic economic factors, such as easing inflation and anticipated rate cuts, will support occupier activity. 'With a resilient demand base, rising flex uptake, and healthy supply additions in key micro-markets, we anticipate the office market will maintain its growth footing in the quarters ahead,' he said.
South China Morning Post
24-03-2025
- Business
- South China Morning Post
AI boom drives record loans for data centres in Southeast Asia
Artificial intelligence (AI) advances are fuelling a funding frenzy for data centres in Asia, spawning a series of record-breaking loans and filling the pipeline with even more potential deals. Advertisement In the span of a week, two major Asian data-centre operators secured their biggest-ever loans, partly earmarked for the expansion of their operations in Malaysia , which is becoming a hub for these facilities. The deals underscore the industry's appeal in attracting a range of investors – from banks to real estate players – as the AI boom drives demand. They also show how much of a data-centre hotspot Asia has become, with demand set to expand by about 32 per cent a year through 2028, according to data by real state services firm Cushman and Wakefield, outpacing the US' expected growth of 18 per cent, though US tariff policy could be a wild card for the industry. A surge in demand of AI services and the US-China tech war are driving a data-centre boom in Southeast Asia. Photo: Shutterstock 'The surge in demand for data-centre capacity has piqued the interest of an ever-growing diverse pool of capital investors and providers across Asia-Pacific,' said Yemi Tepe, a partner at law firm Morrison Foerster, who has worked on tech-related financial transactions. Advertisement
Zawya
14-03-2025
- Business
- Zawya
Qatar: Hospitality real estate sector witnesses significant boost
DOHA: Qatar witnessed a strong increase in tourist arrivals which has led to boosting hotel performance throughout last year. The hospitality real estate sector has been boosted significantly by the increase in tourist arrivals in 2024. The number of hotel keys in Qatar has reached record levels. An increase of 1,240 keys during 2024 saw the total number increase to 40,405 by the end of December. Supply remains dominated by luxury hotels, said Cushman and Wakefield in its latest report. According to Qatar Tourism, 19,410 hotel rooms in Qatar are classified as 5 Star, while only 3,038 hotel rooms in Qatar are classified as 3 Star or below. There are currently 9,925 hotel apartments in Qatar. 'We estimate that more than 80 percent of these apartments are categorized as 'Deluxe', with many situated within 5-star hotel establishments.' While the pace of new development has slowed, there have been some notable new additions to Qatar's hotel supply recently, which include The OQ Hotel in Lusail, and West Walk Retaj Hotel in Al Waab. The annual visitors to Qatar surpassed five million for the first time in 2024. This represents a 28 percent increase from the previous record of 3.9 million visitors in 2023. The GCC represented 41 percent of the 5.08 million visitors to Qatar in 2024, with 23 percent originating from Europe. 37 percent of visitors arrived by road, highlighting that Saudi Arabia still represents Qatar's largest single tourist market, according to Qatar Tourism. The increase in tourist arrivals, coupled with the slowdown in the delivery of new supply has had a positive impact on performance metrics in the hotel sector. According to STR Global's Hotel Industry Performance Report, occupancy rates for Q4 climbed to 77 percent, up from 69 percent in fourth quarter of 2023. The increase in occupancy rates towards year-end contributed to an overall hotel occupancy of 69 percent for 2024 compared to 58 percent in 2023. The increase in visitors and occupancy rates has boosted the Average Daily Rates generated by hotel rooms, which had generally been trending downwards between 2015 and 2022 as the supply of rooms in Qatar grew. The overall Average Daily Rate for hotel rooms in Qatar during fourth quarter was QR463 – a year-on-year increase of 12 percent according to STR Global. Improved hotel performance metrics in last year reflect the success of Qatar Tourism's international marketing campaign since the World Cup and illustrate the benefit of Qatar's focus on hosting international business and leisure events, the number of which continues to increase annually. Qatar's legacy of hosting renowned events — such as the FIFA World Cup, the Geneva International Motor Show, Formula 1, Web Summit, Qatar Economic Forum, and many others — has solidified our position as a global destination of choice. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
07-03-2025
- Business
- Zawya
Qatar: Msheireb witnesses surging demand for office market in Q4
DOHA: Msheireb Downtown District (MDD) is experiencing a soaring demand for office space, with numerous companies expanding their presence during the fourth quarter of 2024. According to a report released recently by Cushman and Wakefield, several office leasing transactions were confirmed in MDD during Q4. Qatar Airways has confirmed that it will relocate its global headquarters to the Msheireb Downtown District (MDD). The supply of new office buildings has significantly slowed over the past two years; however, in Q4, the launch of NBK1—a high-spec office building with approximately 44,000 sq m of space in Msheireb, anchored by the Mercedes car showrooms—was a notable development. On the other hand, Qatar's International Media Office announced its move to the project in December, while Qatar Airways revealed in November its plans to move its global headquarters to MDD, occupying approximately 35,000 sq m. Recent lease agreements have reduced office space in Msheireb to less than 5 percent, with additional new tenants expected to be announced in Q1 2025. Meanwhile, office occupancy in West Bay has also seen an positive growth momentum last year, largely due to new leases secured by the Civil Service and Government Development Bureau on behalf of various government entities. During the past year, over 150,000 sq m of gross leasable office space has been leased or reserved, primarily in Msheireb Downtown and West Bay. The report indicates that available office space in West Bay now stands at approximately 160,000 sq m, accounting for less than 10 percent of the total supply, while in Lusail Marina District, the availability is around 75,000 sq m. In contrast, secondary and tertiary office locations are experiencing higher vacancy rates, with many buildings enduring long-term vacancies and limited demand. Although there have been signs of upward pressure on prime office rents in recent months due to increased demand, rents remain competitive. CAT A office spaces are available for lease between QR100 and QR140 per sq m per month in West Bay and Lusail, while shell and core offices are available for less than QR100 per sq m per month. The report further states that in secondary areas, office spaces can be leased for QR50 to QR60 per sq m per month, reflecting higher vacancies and lower demand. For new developments to be justified, office rents will need to rise from current levels. In the meantime, as availability in prime locations decreases, landlords may be motivated to upgrade older buildings to meet the sustainability requirements of international corporate tenants. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. ( The Peninsula Newspaper
