Waldorf Hotel Sale: Here is a confluence of anoffshore investor seeking to park money in a safe place, the powerof 24-hour city, global gateway dynamics, and overshooting oniconic properties. Just up Park Avenue two condo developershope to cash in on the same factors by building sky-high trophytowers to attract skittish overseas capital. You thinkwealthy Chinese are not nervous over the Hong Kongdemonstrations—highlighting the widening gap between rich and poor?How about if you live in the “peaceful” Middle East? Or do you feelconfident if your home base is in one of the other BRICs? Expectthe money to keep pouring in to a few select elite cities for nowand push up pricing to even more unsustainable levels.
Strong Dollar Buoys U.S. Stocks Well, thestrengthening U.S. dollar also buttresses the aforementioned24-hour U.S. real estate markets. Again offshore capital hasanother reason to look to New York, San Francisco and the handfulof other top cities for husbanding wealth. And if these playersexpect the dollar to maintain its current run, then in theshort-term it makes sense to invest sooner rather than later totake advantage of the currency bet.
Office Sector Plods Ahead Meanwhile, the officemarket nationwide steadily improves at a still uncomfortably tepidpace—overall vacancies remain in the low teens and rents only inchhigher. The lowering unemployment rate hasn't translated intohistorically typical demand improvement, because new jobs aremostly at lower wage rates in non-office related work.
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