NEWSLETTER NEWS FROM THE TURKISH REAL ESTATE MARKET AUTUMN Dear Clients and Friends,

Transcription

1 C O L L I E R S I N T E R N A T I O N A L T U R K E Y NEWSLETTER NEWS FROM THE TURKISH REAL ESTATE MARKET AUTUMN 29 CONTACT DETAILS AGENCY SERVICES Kerim Cin Managing Partner kerim.cin@colliersturkey.com ADVISORY SERVICES Elif Ocak Project Manager elif.ocak@colliersturkey.com EDITOR Eliza Bingül Marketing & PR Manager eliza.bingul@colliersturkey.com Büyükdere Cad. No 18 Enka Binası, Kat Esentepe Istanbul, Turkey Tel Fax Dear Clients and Friends, In this issue of the Newsletter, we would like to present you our Research Department s latest findings regarding Istanbul s A and B class office market. Our analysts have prepared detailed graphs so that you can better understand the overall market situation. In addition, we have extended our forecast studies further, to the end of 212, so that all of our clients - the landlords as well as tenants - can better predict and plan their actions in the next 2-3 years. On the following pages we would also like to share with you our recent success stories as well as the many consulting projects for domestic and foreign companies that ouradvisory Department worked on throughout the last quarter. Enjoy reading! Please, do not hesitate to share your opinions and send your feedback on our Newsletter. Feel free to call us for the details of our project development or tenant representation services at: Eliza Bingül Marketing & PR Manager eliza.bingul@colliersturkey.com COLLIERS INTERNATIONAL TURKEY NEWSLETTER AUTUMN 29 PAGE

2 SO LD! INVESTMENT TRANSACTION Colliers International Turkey acted as an exclusive The property s former owner, Landmark Real Estate, a agent in the investment sale of a commercial build- recognized European real estate company, decided to ing located in Karaköy, on the coast of the European sell the building to a local private investor. side of the Bosphorus, with a Bosphorus view. The strategy applied by Colliers agents throughout the The area where the property is situated is close to the whole marketing period included an advertising camtouristic Old City, prestigious business districts and high- paign in the press as well as active marketing through end residential neighborhoods, within walking distance Colliers targeted database. to the Istanbul Modern Museum, the new international artistic meeting point of the city. Local knowledge, the best quality client portfolio and superior targeting and negotiation skills were the keys It is adjacent to the area designated for the Galata Port to Colliers International s success, enabling the best Project, a cruise ship terminal with a 1 km Bosphorus possible bid and sale of the property. frontage, expected to be offered for redevelopment. COLLIERS INTERNATIONAL TURKEY NEWSLETTER AUTUMN 29 PAGE

3 New Project AKKOM OFFICE PARK ASSIGNMENT Colliers International has been chosen to co-exclusively market (together with KuzeyBati Savills) the Akkom Office Park the first centrally managed business park in Istanbul, which will be ready for commencement in 21. MORE SUCCESS STORIES to negotiate very favorable lease and delivery conditions. Therefore, one can expect increased leasing activity in 21 continuing into the beginning of 211. In 21 we expect increased demand in the Ümraniye district and its new business location - the Akkom Office Park, which can offer large, high quality offices. One of the advantages, not to mention its location and the great visibility of the project, is the park s centrally operated management, which will provide the tenants with a substantial operational and administrative support. said Kerim Cin, the Managing Partner of Colliers International Turkey. He added In Turkey, tenants usually don t lease their offices before the project s completion but in this case we believe that the landlord, being a consortium of Turkey s renowned construction companies, including Eroglu Gorup, Doga and Ittifak, is a guarantee of the best quality of offices. The Akkom Office Park is being developed in Ümraniye, the fastest developing office district of Istanbul. The Akkom Office Park is a complex of 4 separate office buildings developed on 2 parcels totaling 53,732 sqm of land. The gross construction area of the Project is equal to 16, sqm and the leasable area amounts to 9, sqm of A class office premises. The Ümraniye district is one of the most popular business locations in Istanbul nowadays, both as the offshore process outsourcing location as well as the seat of manyinternational and local companies who have decided to move their headquarters there. Frito Lay, Total, Sony and SAP are only a few of the companies that have recently moved to Ümraniye. According to our recent data; most of the new supply delivered to the Ümraniye office sub-market is being absorbed within a short period of time. Even though there are a few office projects in the pipeline in the area, there will not be a lot of new, high-quality supply introduced into the market before the end of 21 or the beginning of 211. Therefore Akkom Office Park is the only option for companies with an immediate need for top quality offices in Umraniye. Furthermore, they will benefit from advantageous low rent introductions. In particular, in accordance with Colliers International s forecasts, 21 and perhaps the first half of 211 will be the last chances for tenants, in the current office market down cycle, Furthermore, we started to see actual demand for the project before it was even on the market. SOLD! Call us to find out the best leasing strategies Tel. 9 (212) Fax. 9 (212) COLLIERS SELLS INVESTMENT LAND IN BiTLiS Acting as an exclusive representative of the landlord, Colliers International Turkey has recently sold one of its investment lands in Bitlis, Turkey. The plot, which size exceeds 2, sqm, was sold to the Municipality of Bitlis, who intends to develop a recreational area there. COLLIERS INTERNATIONAL TURKEY NEWSLETTER AUTUMN 29 PAGE 3

4 RECENT ADVISORY PROJECTS In the second half of 29, Colliers International carried out Market research for the region of Bomonti, an area in the city center which has started to increase in popularity due to its transportation connections, creating an increased demand for luxury housing, including: A survey to determine the demand for a residence project in the planning stage by İpek İnşaat. Office and hotel market research for guiding the project being planned for development by Amplio, including the process of determining and evaluating the most legally and financially efficient use of the area according to the outcomes of this research in the Golden Horn (Haliç) area, one of the regions where urban transformation is felt the most. Researching the applications of airport cities and technopark usage in Turkey and the world, in addition to housing, retail, industrial, office and hotel market research in order to develop this concept for Arup, as well as within the scope of the development project for Sabiha Gökçen Airport, which carries importance for Istanbul in terms of both transportation and development lines and also has recently been on the agenda due to the effect it will have on its close surroundings. Valuation studies for the Toskana Valley project in Büyükçekmece, Hadımköy and the mixed-use project which is also being planned to be developed by Emaar in Libadiye. Hotel, office and housing market research and valuation works according to usage alternatives for projects which can be developed on the real estate prepared for Bayraktar Holding, in Zeytinburnu, where the Ataköy Tourism Center Plan and Zeyport projects have made a positive effect on the development of the region. Market research and financial feasibility studies of an office project which is in the planning stage, prepared for Dinamik Yapı, in the Küçük Çamlıca area, which has started to attract the attention of investors thanks to its proximity to the Altunizade region, one of the most important office areas of Istanbul s Asian side, as well as the ease of finding appropriate land. In addition to these items, Colliers International has continued its work with many companies active in the market, such as Emay, Ertürk Tekstil, Emaar, Başak Groupama, Koç Holding, International Sabiha Gökçen Airport, Eti Pazarlama; while continuing to be the reliable name in Turkey for investors. COLLIERS INTERNATIONAL TURKEY NEWSLETTER AUTUMN 29 PAGE 4

5 Istanbul Office Market Q3 29 Disclaimer The opinions, estimates and information given herein or otherwise in relation hereto are made by Colliers International and affiliated companies in their best judgment, in good faith and as far as possible based on data or sources which are believed to be reliable. The material contained herein is not intended to substitute for obtaining individual advice from Colliers International or another advisor able to provide the services of a qualified professional person. Colliers International, its officers, employees and agents expressly disclaim any liability and responsibility to any person, whether a reader of this publication or not, in respect to anything and to the consequences of anything done or omitted to be done by any such person in reliance whether wholly or partially upon the whole or any part of the contents of this publication. COPYRIGHT Colliers International 29 All rights reserved. No part of this work may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying, recording, recording taping, or information retrieval systems) without the written permission of Colliers International. COLLIERS INTERNATIONAL TURKEY NEWSLETTER AUTUMN 29 PAGE 5

6 ISTANBUL OFFICE MARKET Q3 29 UPDATE ıstanbul offıce market Q3 29 vacancy trends District A Class B Class Maslak Taksim Şişli In this section of our Newsletter; in light of our ongoing office relocation services for our multinational and local clients, altogether with the support of the research department, we present our findings with regards to the Istanbul office market s situation during the third quarter of 29. Rents and vacancies, as well as the net absorption in the A and B class offices in Istanbul, duing Q3, 29, are presented in the graphs below. Etiler Levent Airport Gayrettepe Beşiktaş Kozyatağı % 4% 1.6% ISTANBUL Q3 29 OFFICE MARKET AVERAGE VACANCY RATES A CLASS OFFICES 11.8% 1.7% 5.1% 53.1% 5% 3.6% 1.4% 8.3% 12.3% Kavacık Altunizade Ümraniye OCCUPIED SPACE VACANT SPACE ıstanbul offıce market Q3 29 vacancy trends Europe A Class Asia A Class 2 ISTANBUL Q3 29 OFFICE MARKET AVERAGE VACANCY RATES B CLASS OFFICES 14.5% Europe B Class Asia B Class % 23.3% 7.4% 4.7% 3.1% 5.6% 1.5% 8.3% 31.2% % 3.9% OCCUPIED SPACE VACANT SPACE ISTANBUL AVERAGE VACANCY RATES A & B CLASS OFFICES Q3 29 UPDATE 2 1.2% % A Class B Class OCCUPIED SPACE VACANT SPACE COLLIERS INTERNATIONAL TURKEY NEWSLETTER AUTUMN 29 PAGE 6

7 ISTANBUL OFFICE MARKET Q3 29 UPDATE (cont.) ıstanbul offıce market Q3 29 ASKING RENT trends District A Class B Class Maslak Taksim ISTANBUL Q3 29 AVERAGE ASKING RENTS A CLASS OFFICES $/sqm/month Şişli 1 Etiler Levent Airport Gayrettepe ASKING RENT Beşiktaş Kozyatağı Kavacık Altunizade Ümraniye ISTANBUL Q3 29 AVERAGE ASKING RENTS B CLASS OFFICES $/sqm/month ıstanbul offıce market Q3 29 ASKING RENT trends 5 N/A Europe A Class Asia A Class Europe B Class ASKING RENT Asia B Class ISTANBUL Q3 29 AVERAGE ASKING RENTS A & B CLASS OFFICES $/sqm/month 3 $26 2 $17.8 $12.7 $ ASIA EUROPE A Class B Class ASKING RENT COLLIERS INTERNATIONAL TURKEY NEWSLETTER AUTUMN 29 PAGE 7

8 ISTANBUL OFFICE MARKET Q3 29 UPDATE (cont.) ISTANBUL OFFICE MARKET A CLASS OFFICE VACANCY VS. RENT 4% 35 $ 35% 3% 25% 2% 15% 1% 5% 3 $ 25 $ 2 $ 15 $ 1 $ 5 $ % $ 21 Q3 21 Q4 22 Q1 22 Q2 22 Q3 22 Q4 23 Q1 23 Q2 23 Q3 23 Q4 24 Q1 24 Q2 24 Q3 24 Q4 25 Q1 25 Q2 25 Q3 25 Q4 26 Q1 26 Q2 26 Q3 26 Q4 27 Q1 27 Q2 27 Q3 27 Q4 28 Q1 28 Q2 28 Q3 28 Q4 29 Q1 29 Q2 29 Q3 29 Q4 f 21 Q4 f 211 Q4 f 212 Q4 f VACANCY (%) RENT ($/sqm/month) ISTANBUL A CLASS OFFICE MARKET NET ABSORPTION Q3 29 (sqm) ALTUNIZADE ÜMRANIYE KOZYATAĞI KAVACIK MASLAK TAKSIM ETILER AIRPORT LEVENT G.TEPE BEŞIKTAŞ ŞIŞLI -2 Negative Absorption Positive Absorption Call us to find out the best office leasing strategies Tel. 9 (212) Fax. 9 (212) COLLIERS INTERNATIONAL TURKEY NEWSLETTER AUTUMN 29 PAGE 8

9 NEW OFFICE CLASSIFICATION STANDARDS A CLASS OFFICE BUILDINGS CRITERIA Visibility GOOD Accessibility (good location) EASY Age of the building =< 1 years Floor plate area => 6 sqm Gross space/net space (Add-on factor) =< 2% Floor to ceiling height => 2.7 m Parking capacity (number of all parking places per 1 sqm) => 1:1 sqm Elevators Dual power supply and/or power supply system back-up Air conditioning/humidity control system Number of telephone lines per floor => 2 lines Representative lobby Professional management 7/24 Security Access control Green building Access to amenities for tenants (cafe etc.) Underground parking NEW RESEARCH DEFINITIONS Total Inventory (Total Supply/Total Stock): Total completed office space (occupied and vacant), newly built since 1992 or refurbished, A and B class offices comprising speculative office space intended for lease. Public authorities buildings, owneroccupier buildings and buildings under 75 sq m have been excluded from the survey. The total inventory changes over time when the construction of a new building is completed or when an existing building is demolished. Does not include space under construction or planned projects. New supply: Newly built or refurbished buildings ready for commencement and completed in the given period. Includes also build-to-suit developments. Planned supply: Buildings to be delivered to the market in the ongoing period. A-Class office building: Fulfills at least 15 of the above mentioned criteria. B-Class office building: Fulfills at least 11 of the above mentioned criteria. Gross Absorption (Take-up): A gross figure representing the total floor space known to have been let or pre-let, sold or pre-sold to tenants or owner-occupiers over a specified period of time. It does not include space that is under offer. A property is taken up when the contract is signed. Total take-up includes renegotiations and lease extensions, net take-up (absorption) excludes these. Net Absorption: This is the net change in occupied space between two points in time. Another expression for the term net absorption is occupancy growth, and it may be positive or negative in value. Pre-lease: Active pre-leasing for an office building may begin as soon as preliminary design drawings are ready to be shown to prospective tenants. Pre-leasing continues until the completion of construction. Vacancy: The total unoccupied space expressed in sqm Vacancy Rate: The percentage rate derived by dividing the total vacant square meters by the total inventory. Prime rent: The highest rents that relate to new prime, high specification units in prime locations. Asking rent: The list price for rent. Transactional (Contract) Rent: The amount of rent that has been set forth in a lease agreement. Effective rent: The true rent considering rental concessions, spread over the life of the Lease. COLLIERS INTERNATIONAL TURKEY NEWSLETTER AUTUMN 29 PAGE 9

10 NEW OFFICE SUB-MARKETS DEFINITIONS EUROPE Airport Bayrampaşa Maslak Etiler Levent Şişli - Kağıthane Taksim - Haliç Beşiktaş Gayrettepe ASIA Kavacık Ümraniye Altunizade Kozyatağı Kartal - Pendik OTHER Central business districts Business axes Main communication arteries Colliers International has defined new office submarkets in the Istanbul area taking into consideration the deployment of the properties in the market rather than the administrative divisions. SUB-MARKETS DEFINITIONS District Eastern border Northern border Western border Southern border Altunizade Kavacık Ümraniye Kozyatağı Kartal - Pendik Maslak Levent Inönü Ave., Dereboyu Ave., Karadeniz Ave., Libadiye Ave. Kavacık - Polonezköy Road, Mehmet Akif Ersoy Ave. Osman Gazi Ave., Tokat Ave. Yakacık-Kartal-Samandıra connection road Fatih Ave. The Bosphorus Karanfil Str., Hacı Adil Ave., Çamlık Ave., Faruk Nafız Çamlıbel Str. Çiftlik Ave. The Bosphorus The Bosphorus Bridge ring road Mehmet Yavuz Ave. The Bosphorus Çiftlik Ave., Küçüksu Ave. Küçüksu Ave., FSM Bridge connection road, Şile road The Bosphorus Bridge connection road, Istanbul-Ankara road, Yakacık- Kartal-Samandıra connection road Konak Ave., Narin Ave., Yakuphan Ave., Bosna Ave., Istanbul-Ankara road Pirinçci Köyü road, Büyükdere- Bahçeköy road FSM Bridge connection road Inönü Ave., Dereboyu Ave., Karadeniz Ave., Libadiye Ave. The Bosphorus Bridge ring road Yakacık - Samandıra- Kartal connection road, Spor Ave. Kemerburgaz road Dereboyu Ave., Bahar Str., Şair Çelebi Str., Fatih Sultan Mehmet Street, Bayırca Str., Halil Rahman Ave., Çam Str. Istanbul-Ankara road, Yakacık-Kartal- Samandıra connection road The Marmara Sea The Marmara Sea FSM Bridge connection road Zincirlidere Ave. Etiler The Bosphorus FSM Bridge connection road Gayrettepe Barbaros Ave. Zincirlidere Str. Barbaros Ave., Karanfil Str., Faruk Nafız Çamlıbel Ave., Orgeneral Izzettin Aksular Ave. Prof. Dr. Bülent Tarcan Ave., Vefa Bayırı Str., 2. Taşocağı Ave., Cemal Sururi Str. The Bosphorus Bridge connection road Ayazma Deresi Ave. Beşiktaş The Bosphorus Bridge connection road Ayazma Deresi Ave. Emirhan Ave., Muradiye Bostanı Ave., Hüsrev Gerede Ave., Abdi Ipekçi Ave., Maçka Ave. Bayıldım Ave. The Bosphorus Taksim - Haliç Abdi Ipekçi Ave., Bayıldım Ave. TEM Okmeydanı connection road, Piyalepaşa Ave. Haliç The Bosphorus - Haliç Şişli - Kağıthane Halil Rahman Ave., Bayırca Str., Fatih Sultan Mehmet Str., Şair Çelebi Str., Bahar Str., Dereboyu Ave., Cemal Sururi Str., 2. Taşocağı Ave., Prof. Dr. Bülent Tarcan Ave., Emirhan Ave. FSM Bridge connection road TEM Okmeydanı connection road Hüsrev Gerede Ave., Abdi Ipekçi Ave., Dolapdere Ave., Piyalepaşa Ave., TEM-Okmeydanı connection road Bayrampaşa TEM Okmeydanı connection road FSM Bridge connection road, Adem Yavuz Ave., Mahmutbey Habibler road Gazi Ave., Davutpaşa Otogar Esenler road, General Ali Rıza Gürcan Ave. Çobançeşme-Edirnekapı road, The Bosphorus Bridge connection road Airport Ekrem Kurt Ave., Davutpaşa Esenler road, Gazi Ave. Istoç ring road, 1. Ave., Atatürk Olimpiyat Köyü road The Küçükçekmece Lake The Marmara Sea COLLIERS INTERNATIONAL TURKEY NEWSLETTER AUTUMN 29 PAGE 1

11 FROM OUR PORTFOLIO FOR LEASE - First A class office building in Levent registered to LEED CS - Efficient office area usage - State-of-the-Art innovative architectural design - Excellent location in Levent - Easy access to public transportation (subway, buses) and main arteries (E-5, TEM) - 1 parking space per 1 m 2 of office space Contact details: Gizem Burteçin Tel Fax gizem.burtecin@colliersturkey.com Colliers International is a representative of the landlord; therefore, it doesn t claim any remuneration from the tenants. COLLIERS INTERNATIONAL TURKEY NEWSLETTER AUTUMN 29 PAGE 11