This presentation explores the macro economic backdrop, capital market trends, the changing face of the offices, and infrastructure, globally.

2. ASIAPACIFICHEADOFRESEARCH
NICHOLASHOLT
15TH OCTOBER2015

3. AGENDA
MACROECONOMICBACKDROP
CAPITALMARKETSTRENDS
HOWTHEOFFICEISCHANGING
INFRASTRUCTURE

4. THEEMERGINGMARKETSSLOWDOWN

5. RECENTGROWTHDRIVERS
EmergingMarket
Commodityexporting
Manufacturingled

6. FUTUREGROWTHDRIVERS
Advancedeconomies
Commodityimporting
Services/Techled

7. USGROWTHENGINE
3.9%GDPGrowth
(yeartoQ2)

8. CAPITALMARKETSTRENDS
Someemergingmarketstoseedrop
inoutboundcapital
MoreproactiveUSbuyers
Europeanopportunistmoney
Moreinterestinspecialistsectors
Deregulation

9. PRIMEOFFICEYIELDS(END‘15ESTIMATE)
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Bengaluru
Mumbai
Delhi
MexicoCity
Shanghai
Beijing
Melbourne
Sydney
Chicago
WashingtonDC
LosAngeles
Frankfurt
SanFrancisco
NewYorkCity
Madrid
Tokyo
Singapore
London
Paris
HongKong
Source:KnightFrank/NewmarkGrubbKnightFrank

10. CROSSBORDERINVESTORSPROMINENTININDIA,SGANDMALAYSIA
INVESTMENTINTOREALESTATEH1‘15($M)
Source:KnightFrank/RealCapitalAnalytics
H1 2015 Domestic Foreign % Foreign
US $777,728 $42,456 5%
UK $169,691 $38,710 19%
CHINA $106,011 $17,902 14%
JAPAN $104,284 $3,800 4%
AUSTRALIA $74,919 $5,575 7%
HONGKONG $6,872 $1,560 18%
NEWZEALAND $6,121 $1,170 16%
SINGAPORE $2,954 $2,259 43%
SOUTHKOREA $1,903 $842 31%
MALAYSIA $1,005 $1,454 59%
THAILAND $1,468 $175 11%
INDIA $493 $998 67%

11. TOPTENOFFICERENTALGROWTHTO2018
Source:KnightFrank/NewmarkGrubbKnightFrank
1 6
2 7
3 8
4 9
5 10
22% 14%
21% 13%
20% 12%
16% 10%
16% 9%
MADRID LONDON
MUMBAI LOSANGELES
SANFRANCISCO HONGKONG
MELBOURNE PARIS
BENGALURU CHICAGO

12. HOWTHEOFFICEISCHANGING

13. COOLOFFICES
Courting‘Millennials’
Desksout/sofasin
Growingfastinpopularity

14. IMPACTONDENSITIES?
Typical space allocation per worker
Source:KnightFrank/NewmarkGrubbKnightFrank
SHANGHAI NEWYORK PARIS LONDON SYDNEY MUMBAI
160 150 150
120 120
75
100
SINGAPORE

15. INFRASTRUCTURE1:TRANSPORT
Airport:Dubai,Beijing,Singapore,
HongKong
Intercityrail:Japan,SEAsia
Metro:Acrossmostmarkets

16. INFRASTRUCTURE2:INDIA
Delhi/MumbaiIndustrialCorridor
920mileslong,186mileswide
Newrail,seaports,airports,
and100smartcities

17. INFRASTRUCTURE3:ONEBELTONEROAD
China:OneBeltOneRoad
NewSilkRoadEconomicBelt
21st-CenturyMaritimeSilkRoad

18. SUMMARY
Growthshiftingfromemergingtomaturemarketswithglobalcitiestocontinuetoattract
significantinvestmentcapital
Officemarketsarechangingintermsoftenantprofile,designandfit-out,respondingtothe
needsofbusinessesandemployees
InfrastructureissupportingthedevelopmentoftheGlobalCitiesandwillprovideopportunities
forinvestmentgoingforward

20. PRIMEYIELDS:INDIANCITIESAHEADOFNEWYORK&LONDON
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Bengaluru
Mumbai
Delhi
MexicoCity
Shanghai
Beijing
Melbourne
Sydney
Chicago
WashingtonDC
LosAngeles
Frankfurt
SanFrancisco
NewYorkCity
Madrid
Tokyo
Singapore
London
Paris
HongKong
Source:KnightFrank/NewmarkGrubbKnightFrank

21. CURRENTRENTALS:MUMBAIANDDELHIARELOWERTHANTHE2007PEAK
Source:KnightFrank/NewmarkGrubbKnightFrank
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0% Beijing
SanFrancisco
Melbourne
Sydney
London
WashingtonDC
Bengaluru
MexicoCity
Shanghai
LosAngeles
Frankfurt
HongKong
NewYorkCity
Chicago
Paris
Mumbai
Delhi
Tokyo
Madrid
Singapore

22. FUTURERENTALGROWTH:MUMBAI&BENGALURUAMONGTOP5
Source:KnightFrank/NewmarkGrubbKnightFrank
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Madrid
Mumbai
SanFrancisco
Melbourne
Bengaluru
London
LosAngeles
HongKong
Paris
Chicago
WashingtonDC
Sydney
Shanghai
NewYorkCity
Tokyo
Delhi
Frankfurt
MexicoCity
Beijing
Singapore

23. DMICAMONGSTTHETOP5
Source:KnightFrank/NewmarkGrubbKnightFrank
Triplingindustrialoutputandquadrupling
exportsinthenext5years
GlobalITmajorstohelptransformationof
SmartCitiesonthiscorridor
Delhitobecomeaneconomicanchorof
NorthIndia
CAPITALFLOWS
ForeigninvestmentinIndianRealEstate
doubleofthedomesticflow
REITtogiveafurtherpushtocommercial
realestate;Couldattractinvestments
worth$100bninthenextfewyears

24. ROBUSTOUTLOOKFORCOMMERCIALREALESTATE
Strongdemandfrome-commerceandstart-ups
Highyieldsandrentalgrowth aperfectcombinationforinvestment
Heightenedforeigninterestcoupledwithimprovingregulatorylandscape
Robusteconomicgrowth,focusoninfrastructureandeaseofdoingbusiness