Foresight

Investment Rating - The report indicates a focus on the North Asia real estate market, highlighting Tokyo as a leading market, with Shanghai and Tianjin also showing strong potential for growth in the coming years [4][54]. Core Insights - The North Asia market is becoming a focal point for investors due to its high risks and potential returns, with long-term low interest rates benefiting tenants and investors alike [3][5]. - Tokyo ranks first in the North Asia leasing market and investment market, with Shanghai and Tianjin following closely [4][54]. - The report anticipates that by 2017, Shanghai will rise to the top of both the global and North Asia rankings, driven by high vacancy rates and new supply [4][54]. Summary by Sections Global Outlook - The global economy is expected to grow, with the US economy recovering and the Federal Reserve ending its quantitative easing policy [10]. - Despite some downwards risks, long-term low interest rates have allowed tenants and investors to benefit significantly [5][11]. Regional Outlook - Tokyo leads the North Asia leasing market, with Shanghai and Tianjin following, while the future supply of office space in China is expected to exceed current stock [54][56]. - The average rental cost per workstation in North Asia is projected to reach $7,490 by the end of 2017, with significant downward pressure on rents in secondary cities due to new supply [56]. Leasing Market Assessment - The report identifies key factors influencing tenant decisions, including market entry potential, market supply, and investment returns [22][25]. - Mumbai, Tokyo, and Los Angeles are highlighted as the most attractive cities for tenants globally, with Mumbai's high score attributed to its industrial base and low rental prices [28][75]. Investment Market Assessment - The investment market remains attractive in Tokyo, Shanghai, and Beijing, with these markets being undervalued [63][64]. - The industrial market in China is increasingly viewed as a prime investment opportunity due to stable income growth and the rise of e-commerce [65][66]. Future Projections - By 2017, Shanghai is expected to lead the rankings in the Asia-Pacific region, with significant growth in industrial and high-tech sectors [73][74]. - The report emphasizes the shift in focus from traditional manufacturing to high-tech and high-value industries in Chinese cities [74].