According to a report published by CB Richard Ellis Group Inc. (CBG), the world’s largest commercial real estate services company (on the basis of 2010 revenues), the city of Perth on the Western coast of Australia would outshine Sydney as the most expensive office market in the country by 2015.
Perth has long been a home to some of the leading mining firms of Australia, and with the current commodities boom driven by the rapid strides in industrialization and urbanization in China and India, office demand has surged significantly.
The average office rent graph has continuously moved up for Perth and is anticipated to climb to a tally of A$963 per square metre per year by December 2015, while that in Sydney is expected to reach A$890. Although Sydney is expected to witness new supply levels, the growth rate is likely to slow compared to that of the central business district of Perth.
CB Richard Ellis is the global market leader in commercial real estate brokerage and advisory services for property leasing and sales, forecasting, valuations, origination and servicing of commercial mortgage loans, as well as project and real estate investment management.
The company has a broad range of real estate products and services, and an extensive knowledge of domestic and international real estate markets that enables it to operate as a single-source provider of real estate solutions.
CB Richard Ellis offers a range of services to occupiers, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estate assets globally under the CB Richard Ellis brand, and provides development services under the Trammell Crow brand.
We maintain our Outperform rating on CB Richard Ellis, which presently has a Zacks #2 Rank translating into a short-term Buy recommendation and indicates that the stock is expected to perform well above the overall U.S. equity market for the next 1−3 months.
We also have an Outperform rating and a Zacks #1 Rank (short-term Strong Buy) for NorthStar Realty Finance Corp. (NRF), one of the peers of CB Richard Ellis.
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