RCA in the commercial property press:

Canadian Pension Plan Investment Board Buying Manhattan Office Space

Financial Post reports: The CPPIB may have entered the New York office market at just the right time, according to leading commercial real estate watchers.

Monday, the investment arm of the Canada Pension Plan purchased a 45% stake in two prime midtown Manhattan office towers for a combined cost of US$663-million. The two buildings, together valued at more than US$1.45-billion, represent the first ever New York properties to join the pension plan's $7.1-billion real estate investment portfolio.

North America's commercial real estate market is still in pretty bad shape overall. Chicago-based commercial real estate services firm Jones LaSalle expects office vacancies will keep rising and rents will keep falling across Canada and the United States through to the end of the year. But market experts are predicting that the office market for midtown Manhattan is already on the road to recovery.

"New York is a unique case," said Dan Fasulo, managing director of global commercial property research firm Real Capital Analytics. "It is easy to say that rates are still falling when you're looking at nation-wide averages, but it is clear in many of the major global cities that rents and occupancy levels have stabilized if not improved in the last three months."

Articles related to this topic:

 Manhattan Office Sector Headed for a Rebound
 Dan Fasulo Discusses CRE Recovery at MIPIM 2010
 CALSTRS to Sell Stake in Downtown NYC Office 120 Broadway

Posted by: Nina Turner

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