Waldorf Hotel Sale: Here is a confluence of an offshore investor seeking to park money in a safe place, the power of 24-hour city, global gateway dynamics, and overshooting on iconic properties. Just up Park Avenue two condo developers hope to cash in on the same factors by building sky-high trophy towers to attract skittish overseas capital. You think wealthy Chinese are not nervous over the Hong Kong demonstrations—highlighting the widening gap between rich and poor? How about if you live in the “peaceful” Middle East? Or do you feel confident if your home base is in one of the other BRICs? Expect the money to keep pouring in to a few select elite cities for now and push up pricing to even more unsustainable levels.
Strong Dollar Buoys U.S. Stocks Well, the strengthening U.S. dollar also buttresses the aforementioned 24-hour U.S. real estate markets. Again offshore capital has another reason to look to New York, San Francisco and the handful of other top cities for husbanding wealth. And if these players expect the dollar to maintain its current run, then in the short-term it makes sense to invest sooner rather than later to take advantage of the currency bet.
Office Sector Plods Ahead Meanwhile, the office market nationwide steadily improves at a still uncomfortably tepid pace—overall vacancies remain in the low teens and rents only inch higher. The lowering unemployment rate hasn't translated into historically typical demand improvement, because new jobs are mostly at lower wage rates in non-office related work.
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