Global Capital Flows and Investments in Real Estate Office Markets in Global Financial Cities.

2018 ◽  
Author(s):  
Michael McCord ◽  
Stanley McGreal ◽  
Jim Berry ◽  
Olawumi Fadeyi
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olawumi Fadeyi ◽  
Stanley McGreal ◽  
Michael McCord ◽  
Jim Berry

PurposeOffice markets and particularly international financial centres over the past decade have experienced rapid financialisation, developments and indeed changes in the post-global financial crisis (GFC) landscape. Importantly, the volume and types of international capital flows have witnessed more foreign actors and vehicles entering into the investment landscape with the concentration of investment intensifying within key financial centres. This paper examines the interaction of international real estate capital flows in the London, New York and Tokyo office markets between 2007 and 2017.Design/methodology/approachUsing Real Capital Analytics (RCA) data comprising over 5,700 office property transactions equating to $563bn between 2007 and 2017, the direct global capital flows into the London, New York and Tokyo office markets are assessed using an autoregressive distributed lag (ARDL) approach. Further, Granger causality tests are examined to analyse the short-run interaction of international real estate capital flows into these three major office markets.FindingsBy assessing the relativity of internal to external investments in these three central business district (CBD) office markets, differences in market dynamics are highlighted. The London office market is shown to be highly dependent on international flows and the USA, the foremost source of cross-border investment on the global stage. The cointegration and causality analysis indicate that cross-border real estate investment flows in these markets (and financial centres) show both long- and short-run relationships and suggest that the London office market remains more distinct and the most reliant on international capital flows with a wider geographical spread of investment activities and investor types. In the case of New York and Tokyo, these markets appear to be driven by more domestic investment activity and capital seemingly due to subtle factors pertaining to investor home bias, risk aversion and diversification strategies between the markets in the aftermath of the GFC.Originality/valueGiven the importance of the CBD offices in London, New York and Tokyo as an asset class for institutional investors, this paper provides some insights as to their level of connection and the interaction of the international capital flows into these three major cities.


2019 ◽  
Vol 10 (5) ◽  
pp. 380-386
Author(s):  
Jan Veuger ◽  

The 34th annual congress of April 10-14 this year took place in Bonita Springs (Florida) where the professionals in real-estate education and research discussed six themes: global economy and capital flows, real estate market cycles, demographic effects, future-proof real estate, disruption in technology and future educational models.


Author(s):  
Joseph Ben Prestel

Between 1860 and 1910, Berlin and Cairo went through a period of dynamic transformation. During this period, a growing number of contemporaries in both places made corresponding arguments about how urban change affected city dwellers’ emotions. In newspaper articles, scientific treatises, and pamphlets, shifting practices, such as nighttime leisure, were depicted as affecting feelings like love and disgust. Looking at the ways in which different urban dwellers, from psychologists to revelers, framed recent changes in terms of emotions, this book reveals the striking parallels between the histories of Berlin and Cairo. In both cities, various authors associated changes in the city with such phenomena as a loss of control over feelings or the need for a reform of emotions. The parallels in these arguments belie the assumed dissimilarity between European and Middle Eastern cities during the nineteenth century. Drawing on similar debates about emotions in Berlin and Cairo, the book provides a new argument about the regional compartmentalization of urban history. It highlights how the circulation of scientific knowledge, the expansion of empires, and global capital flows led to similarities in the pasts of these two cities. By combining urban history and the history of emotions, this book proposes an innovative perspective on the emergence of different, yet comparable cities at the end of the nineteenth century.


2016 ◽  
Vol 106 (5) ◽  
pp. 574-580 ◽  
Author(s):  
Carmen M. Reinhart ◽  
Vincent Reinhart ◽  
Christoph Trebesch

Capital flow and commodity cycles have long been connected with economic crises. Sparse historical data, however, has made it difficult to connect their timing. We date turning points in global capital flows and commodity prices across two centuries and provide estimates from alternative data sources. We then document a strong overlap between the ebb and flow of financial capital, the commodity price super-cycle, and sovereign defaults since 1815. The results have implications for today, as many emerging markets are facing a double bust in capital inflows and commodity prices, making them vulnerable to crises.


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