As the global economy continues to improve, more U.S. REITs will find favorable destinations for cross-border transactions. Ross Moore, vice president of research with Colliers International, says he sees some exciting opportunities in Europe for U.S. REITs.

"The whole logistics industry is changing and consolidating. It’s becoming truly global so the dynamics of the European marketplace are changing as well," Moore says. "For example, you don’t have Paris just serving France but becoming a hub for France, Belgium and the Netherlands."

In the Americas, outside of Canada and the U.S., there are just two good primary markets, Mexico and Brazil, with some people also considering Chile, Moore says. In Asia, Moore looks to the traditional distribution centers of Hong Kong and Singapore. China, he adds, has a lot of potential, but a REIT would probably have to form a joint venture to gain a foothold.

In the chart below, Colliers shows the top five office markets in each region based on lowest vacancy rates and highest net rent for Class A space.

Lowest Office Vacancy Rates in CBDs
Europe/Middle East/Africa
Market	Vacancy Rate June 2004	Vacancy Rate Dec. 2003
Geneva, Switzerland	3.2%	2.7%
Johannesburg, South Africa	3.3%	6.0%
Pretoria, South Africa	4.8%	9.3%
Zurich, Switzerland	5.1%	5.8%
Paris-Central, France	5.5%	4.6%
Stuttgart, Germany	5.5%	5.3%
Americas
Market	Vacancy Rate June 2004	Vacancy Rate Dec. 2003
Bogota, Colombia	1.6%	4.0%
Ottawa, Canada	3.8%	3.2%
Washington, D.C., U.S.	7.2%	7.8%
Calgary, Canada	9.8%	11.7%
Santiago, Chile	10.1%	12.3%
Asia Pacific
Market	Vacancy Rate June 2004	Vacancy Rate Dec. 2003
Seoul, South Korea	3.8%	2.8%
Bangalore, India	5.0%	8.0%
Tokyo-Central Wards, Japan	7.5%	8.0%
Wellington, New Zealand	8.3%	9.1%
Taipei, Taiwan	9.7%	13.3%

Highest Class A Net Office Rents in CBDs
Europe/Middle East/Africa
Market	Class A Net Rent June 2004	Class A Gross Rent June 2004
London-West End, U.K.	$99.39	$130.10
London-City, U.K.	$63.25	$83.12
Paris-Central, France	$60.63	$69.62
Moscow, Russia	$49.72	$57.62
Paris-La Défense, France	$48.28	$57.26
Americas
Market	Class A Net Rent June 2004	Class A Gross Rent June 2004
New York-Midtown, U.S.	$38.25	$54.25
Washington, D.C., U.S.	$29.75	$42.75
Mexico City, Mexico	$26.77	$29.55
Sao Paulo, Brazil	$23.65	$27.06
Boston, U.S.	$23.49	$38.99
Asia Pacific
Market	Class A Net Rent June 2004	Class A Gross Rent June 2004
Tokyo-Central Wards, Japan	$77.78	$101.19
Hong Kong, China	$42.64	$56.13
Sydney, Australia	$30.45	$38.14
Mumbai, India	$29.95	$33.07
Shanghai, China	$26.77	$31.00
Source: Colliers International. Rents are in U.S. dollars per square foot, per year.