1. Peru: Westin Looks To Revive Lima Hotel Business
Operators of the Westin Lima Hotel & Convention Center are looking for a rebound in regional hospitality business in 2024 after increased hotel supply and social conflicts in Peru’s capital city muted pricing power for existing hotels last year.
Andrés Rosero, general manager of the Westin property, said the second half of 2023 “showed a favorable change, and we have seen international tourists come back to the destination and to the hotel.” According to CoStar data, 24 hotels have opened in Peru since 2019, and 16 of those were in Lima.
2. UK: Companies Launch Searches for Big London Office Spaces
A flurry of new office requirements in the city of London, totaling more than 1 million square feet, has lifted expectations for a continued recovery in space demand as 2024 gets underway.
Japanese investment bank Nomura, advised by brokerage Newmark, has launched a search for between 250,000 and 300,000 square feet of offices, and U.S. insurance broker Gallagher is looking for around 250,000 square feet. They are joined by several others, including global professional services company Accenture, which appointed CBRE to find options for a regional headquarters building spanning 250,000 to 350,000 square feet.
3. France: Real Estate Hiring Stalls Amid Industry Challenges
Hiring by French real estate companies has come to a virtual standstill amid lingering economic challenges facing the industry after several years of sustained competition for talent along with perpetual pay inflation.
An annual year-end study by recruitment firm Robert Walters showed real estate industry salaries in France stagnating as hiring froze at many companies. Robert Walters Associate Director Arnaud Monteil said real estate firms “are showing a great deal of caution,” with mixed employment conditions expected in the coming year.
4. Germany: Residential Developer Vonovia Returns to Bond Market
Vonovia, among Germany and Europe’s largest residential development and investment firms, has issued a bond for the first time since fall 2022 as it looks to capitalize on improving bond market conditions.
Bochum, Germany-based Vonovia last year refinanced itself exclusively via secured bank loans and sold properties in order to stabilize finances despite property devaluations. Chief Financial Officer Philip Grosse said the time is right to return to the bond market, as interest rates and spreads since December “have developed in such a way that financial bonds are competitive again.”
5. Canada: Toronto Plans One of Region’s Largest Affordable Housing Projects
The city of Toronto is teaming up with developers for a project that officials said will be among the largest affordable housing developments built in Ontario in the past 25 years.
City officials said the development with CreateTO, Civic Developments, Windmill Developments and the Housing Federation of Toronto will have 918 homes, including 612 apartments with a mix of income-based and market-rate units. “This will be the largest co-operative housing development in Ontario to date and will serve as a roadmap to help guide future developments,” Toronto Mayor Olivia Chow said in a statement.
6. US: Intuit Dome Fuels Sports-Related Real Estate Demand Near Los Angeles
The pending completion of a new NBA arena, along with a trio of planned major sports events in the Los Angeles area, is spurring more real estate demand in the nearby city of Inglewood, California.
The Los Angeles Clippers expect to wrap up construction this summer on the nearly $2 billion Intuit Dome in Inglewood, a venue that’s expected to play host to the 2026 NBA All-Star Game, the NBA confirmed. Industry professionals have said the arena’s completion is critical for the 2028 Olympics planned for greater Los Angeles, as the Intuit Dome’s neighbor, the roughly $5 billion SoFi Stadium, will also host Olympic events about one year after it hosts the 2027 Super Bowl.
This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.