Commercial Real Estate Industry

William (Jason) Ceglarz, Chris Chen, Neel Patel, Marc Rasmussen, Matt Stewart, Edrin Shamtob

Key Findings• Commercial real estate accounts for 78.4% of the world’s GDP and is projected to grow 2% per year for the

next 5 years.• Global commercial real estate market is closely tied to the global macroeconomic environment and key drivers

are access to capital, unemployment and access to labor. Prices in the real estate industry are largely influenced by available supply and demand.

• Real estate is highly concentrated in the top 15 countries but within each country competition is decentralized and fragmented.

• Cross border commercial real estate investment is slowly growing but the the majority of investment is still driven by domestic investors.

• The multiplier effect of commercial real estate is significant as seen in the U.S. with $787 billion contributing to $2.27 trillion in GDP.

• Significant cultural, administrative, geographic and economic restraints prevent the globalization of real estate. Demand variability across countries further promotes localization of the commercial real estate industry.

• China’s high economic growth and urbanization has led to fast growth but oversupply has started to cool the the industry as a whole.

• The Chinese commercial real estate is a fairly attractive industry but government controls, high capital requirements over supply, increasing labor cost, rising commodity costs, and uncertain interest rates are issues facing firms in China.

• Successful commercial real estate companies such as Kerry Properties, Simon Property Group and Unibail-Rodamco have a defined focus and vertical integration throughout the value chain.

Overview of the global commercial real estate market

The Global Commercial Real Estate industry accounts for approximately 78.4% of world GDP. There are many different sectors which include brokerage, asset management, research and analytics, consulting, valuation, appraisal, construction and facilities management. 1

1. Data. IBIS World, Global Commercial Real Estate. Web. October 2012. http://clients1.ibisworld.com.libproxy.usc.edu/reports/gl/industry/default.aspx?entid=1866

As seen above, the majority of real estate investment is constrained to the developed countries due to the high level of capital needed for investment (the top 3 regions account for 84.9% of total industry revenue). The distribution of property types is more evenly distributed, but still skewed towards property types with greater initial capital requirements, such as Office and Retail.

Drivers of the global commercial real estate market

Finance• The industry relies on the capital markets to provide financing

for building, renovations, purchases, etc. The more stringent lenders are and the higher the prevailing interests, the less profitable the industry.1

Industry• The demand for real estate is tied to the global macro

environment. When the economy has low / negative growth companies are less likely to expand operations and the demand for properties decrease. As seen in the chart to the right, rents tend to decrease in such an environment.1

Labor• Economic employment directly affects real estate valuations.

High unemployment implies that businesses do not need as much office space. It also infers that the general population has fewer funds at his/ her disposal so residential, retail, and industrial prices will be suppressed. 1

High Vacancy/ Overdevelopment• During economic booms, real estate development

companies tend to over-build, which leads to excess capacity and compresses rents/ prices of real estate. 1,2

1. Data. IBIS World, Global Commercial Real Estate. Web. October 2012. http://clients1.ibisworld.com.libproxy.usc.edu/reports/gl/industry/default.aspx?entid=1866 2. Pitzner, Abigail. Global Market Overview Q32012. Rep. N.p.: CBRE Global Research and Consulting,. Web. www.cbre.com .

The global commercial real estate market is very cyclical and ebbs and flows with the world economy. The industry saw negative annualized growth of (2.8%) for the 5 years ending in 2012 to $5.2 trillion in revenue.1 The following items are the key drivers that affect the global commercial real estate market:

Industry is concentrated within large countries but business power is decentralizedCommercial real estate is a capital intensive and as a result it is concentrated in countries with large GDP. U.S. has the largest asset base of institutional grade commercial real estate but still only has market share of 25%. Capital intensity also creates a fragmented and highly decentralized industry as seen in the U.S where the 10 largest REIT are less than 3% of total commercial real estate assets. Furthermore, according to OECD data and IBISWorld estimates, non-employers or self-owned firms are estimated to total approximately 29.3% of all commercial real estate related firms in 2012. 1

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1. Data. IBIS World, Global Commercial Real Estate. Web. October 2012. http://clients1.ibisworld.com.libproxy.usc.edu/reports/gl/industry/default.aspx?entid=18663. Fiorila, Kapas, Liang. “A Bird’s Eye View of Global Real Estate Markets: 2012 Update” Prudential Real Estate Advisors, 20124. Data. Google Finance. Market Capitalization Values. March 28, 2013

Commercial real estate investment is localizedReal estate is driven by capital. Jones, Lang & LaSalle (JLL) processed $136b of cross border real estate transactions in 20121. However, capital investment in real estate still remains regionally & domestically driven in most of the major global markets, especially in the Asia Pacific region.

JLL 2012 Cross Border Capital Flow5 CBRE Asia Pacific Investor Origin6

5. “Global Market Perspectives” Jones Lang & LaSalle, First Quarter 20136. “Marketview: Asia Pacific Capital Markets” CBRE Global Research & Consultin, Q4 2012

Economic link between GDP & Commercial Real EstateIn 2011, U.S. commercial real estate construction investments were $787 billion. The spending on construction accounted for the following:

– Contributed $2.27 trillion towards GDP– Supported 17.2m jobs– Generated $677 billion in personal earnings

The significant job opportunities and multiplier effects of real estate investment drive domestic favoritism.

– Government concession are often given to domestic companies who have a reputation, relationship and connection with the local markets.

– Local knowledge of the development process and political procedures further promotes local opportunities for commercial real estate

Sample Effect of Commercial Real Estate Construction in U.S.7

7. Fuller, Steven. “How Office, Industrial and Retail Development and Construction Contributed to the U.S. Economy in 2011” NAIOP Research Foundation. May 2012

Demand variability across countries & citiesDemand for commercial property types varies across regions, countries and even cities. The variability of demand further increases the need to have a local understanding and presence in each market. The charts below outline the variable market demand across cities for office properties.

Office – Q4 12 Major City Capital Clock5 Office – Q4 12 Major City Rental Clock5

5. “Global Market Perspectives” Jones Lang & LaSalle, First Quarter 2013

Significant factors influencing localization of real estateThe largest commercial real estate company in the world, Mutsui Fudosan, holds 0.3% market share. Cultural, administrative, geographic and economic differences between regions are significant. Real estate is highly intertwined with the local community and thus requires in-depth local knowledge.1

CulturalAcceptable social expectations can impact the design of a building while language barriers can impede communication with tenants. IBISWorld notes that excellent customer relations is a key for success in the industry and understanding local cultures is necessary.

AdministrativeDevelopment approval, government inspections, tax breaks, interest rates can vary greatly across countries. China for example has no entitlement process where the U.S. has a long and complex process. Furthermore, the absence of major institutional agencies and controls can further complicate the process between countries.

GeographicGeography plays an important role in the layout of a city/country. Supply is primarily dictated by land access and size of the country. Furthermore, it is extremely difficult to inspect and manage properties over large areas.

EconomicEconomic impacts are significant for real estate. Demand and pricing for rents will be driven by the GDP levels of the country. Furthermore, access to labor and natural resources drives construction costs when adding additional commercial property supply.

1. Data. IBIS World, Global Commercial Real Estate. Web. October 2012. http://clients1.ibisworld.com.libproxy.usc.edu/reports/gl/industry/default.aspx?entid=1866

Where is the commercial real estate market going in the future?

1. Data. IBIS World, Global Commercial Real Estate. Web. October 2012. http://clients1.ibisworld.com.libproxy.usc.edu/reports/gl/industry/default.aspx?entid=1866 5. “Global Market Perspectives” Jones Lang & LaSalle, First Quarter 20138. Global Market Outlook, Trends in Real Estate Private Equity. Rep. Ernst & Young, 2012. Web. <http://www.ey.com/Publication/vwLUAssets/Trends_in_real_estate_private_equity/$FILE/Trends_in_real_estate_private_equity.pdf>.3. Fiorilla, Paul, Manidipia Kapas, CFA, and Youguo Kiang, Phd, CFA. Bird's Eye View of Global Real Estate Markets: 2012 Update. Rep. N.p.: Prudential Real Estate Investors, n.d. Print

The global real estate market was hit particularly hard during the recession but it is stating to reverse its course. Industry growth is projected in the 2% range over the 5 years ending in 2017 and should primarily come from the Emerging markets as the financial infrastructure in the countries become more developed.1

• US / European growth: As US and European economies pullout of the recession and pre-built out vacancy is eliminated the industry will strengthen. However, the timeline is unclear as austerity measures are still holding back Europe and it is unclear what will be the long-term consequences of the US’s continual budget deficits. 1

• Work place trends: A continued move towards telecommuting, teleconferencing, home offices , and internet shopping may limit the

need for some commercial real estate. 1

• Financing: In the wake of the global recession, many banks tightened their lending standards making qualifications for a loan more difficult.8

• Asian growth: If the financial markets in the Asian markets do not develop as quickly as expected, the access to capital would potentially hinder development.5

Even though the global real estate market shows signs of growth there are still many risks to be cognizant of:

3

From 2005 through 2012, new commercial floor space under construction averaged around 17% annual growth as real estate became the single most salient driver of domestic demand. As prices and GDP rose at a greater pace than incomes, the government was forced to impose draconian controls, choking off demand. The reduction of state-owned enterprises has increased competition for commercial real estate across the country; however, government controls and regulations are still prevelant.

The Effect: Oversupply has left China’s cities ringed with empty suburbs and skylines littered with half-finished tower blocks. New floor space under construction shrank 12.7% year-over-year in the first ten months of 2012

30. http://graphics.wsj.com/documents/ECONTRACKER_CHINA/index.php#ind=houseprice

Historical growth in China has been strong but may slow going forward

China’s commercial real estate industry is moderately attractiveThe fast pace growth of China’s commercial real estate market is highly attractive. There is no major force that adversely impacts competitors in this industry. The largest concern is the power of the government to drastically change the landscape of the industry in the future.

Rivalry (Moderate)19

> High degree of competition on land development rights, brand development, and aftersales services.

> Quality key competitive advantage, easily replicated.

> High competition for large development projects.

> Price competition limited by macroeconomic conditions

Barriers to Entry (Moderate)19

> Large capital requirements> Restrictive loan policies for small

companies> Government regulations costly and

limit access to properties/land> Reputation important to secure

transaction requirements> High growth increasing demand> High exit barriers for property

owners

Buyer Power (Moderate)19

> Renters for property have limited bargaining power

> High switching costs for leases or ownership.

> Power of broker limited by intense competition & low concentration

> Low purchasing power from Chinese citizens

> Demand much greater than supply increasing price competition

Threat of Substitutes (Low)19

> Non-tangible permanent substitutes - such work from home- video conferencing- e-commerce, and

> Above substitutes may limit or shift demand but not eliminate need for real estate.

Supplier Power (Low)19

> The Building construction industry is highly fragmented

> Communist government controls supplier power-Land sales-Capital allocation

> Potential backward integration and high fragmentation limits power

> Building materials primarily dictated by commodities market

19. Data. IBIS World, Commercial Real Estate in China. Web. October 2012

Factor Conditions Cheap labor- Small number of employees required on average. Low personal income levels. Cheap labor. 11

Standardized technology- Not far advanced, however, it is standardized and large firms can take advantage by using uniform, commercialized systems. 11

Government policies- Expected to increase real estate supply levels by providing more land supplies by issuing stricter macro-control policies to restrain soaring real estate prices. 11

High growth is fueling the demand for real estate

Demand Conditions Low investment abroad-Only 7.4% of real estate companies are investing abroad; however, the amt of funds invested is increasing year over year. 11

Expansion- The first tier cities are built out and the second tier cities are still expanding. 11/12

Per capita income- Incomes are trending higher which will provide more disposable income. 11

Related and Supporting Industries Capital providers- Debt markets are underdeveloped and the CBOC is raising interest rates. 9

Construction- Well developed Industry that has been growing at an annualized rate of 22.1% and accounted for approximately 25% of China’s GDP in 2011. 10

Raw materials- China externally source the majority of its raw materials.

Firm Strategy, Structure, & Rivalry

Rivalry- High due a fragmented industry made up of smaller firms, which leads to fierce competition. 11

Structure and Strategy- Historically, the smaller firms have been able to make decisions quicker than the larger conglomerates focus more on quick turn-around projects. 11

9. Wassener, Bettina. "China Raises Rates Again in an Effort to Slow Inflation." The New York Times. The New York Times, 07 July 2011. Web. 01 Apr. 2013.10. "China's Trillion-Dollar Construction Industry Boosted by Increased Government Housing." China's Trillion-Dollar Construction Industry Boosted by Increased Government Housing. N.p., n.d. Web. 01 Apr. 2013.11. Commercial Real Estate in China. Rep. IBISWorld, Oct.-Nov. 2012. Web. 01 Apr. 2013.12. "Urban Population Growth (annual %) in China." Urban Population Growth (annual %) in China. N.p., n.d. Web. 01 Apr. 2013.

Institutional Voids Analysis: The regulation & heavy corruption make the RE industry difficult to enter for foreign investors

National Infrastructure31

Property Protection -Recently as 2004 property rights were amended as the development in this area continued. The property law of 2007 allows ownership rights allow Chinese real estate companies to possess, utilize, and dispose of and obtain profits from property. Security rights include mortgages, pledges, and liens. Holders of security rights have priority if a debtor defaults.

National Institutions and Openness31

Political Accountability

Role of Government in Business

Transparency/Corruption

Social Institutions

-The land in China belongs to the state. The government in turn has the power to retake land for uses they deem appropriate. This is in the Chinese constitution and is allowed as long as the Chinese authorities deem it appropriate in the publics' interest. -The land in China belongs to the state. The government in turn has the power to retake land for uses they deem appropriate. This is in the Chinese constitution and is allowed as long as the Chinese authorities deem it appropriate in the publics' interest. -While the Property Law enacted in 2007 provides some legal leverage to prevent the abuse of power by village councils, it remains to be seen if legal remedies are accessible or are even used by the villagers. Prevailing local culture, the fear of authority and the possibility of violent repercussions hinder a victim's inclination to seek legal recourse. Also, such rules may be disregarded by the committees or councils due to lack of enforcement.-China still retains the concept of collectively-owned-farmland in the rural areas. This creates a large potential for abuse as the critical decisions regarding the land and its use are made by a small number of village leaders.

Economic and Social Openness32

Limits on Foreign FirmsFDI

Government Bureaucracy

-A foreign investor is NOT allowed to buy land in China.-Land usage on contract lasts only 40 years for commercial use.-China is trying to reduce governmental bureaucracy. They are restructuring their State Council in a continuing effort. Keep in mind that this transformation isn't going to be easy and has been underway since 1980 and it may take a while.

Product Market Voids33

Efficiency of Consumer MarketIndustrial Supply Market

Consumer Trust, Protection, & Credit

-Semi-strong market efficiency for real estate. Private information is not readily available, however public form is available to all.-Steel industry has been growing for several decades and just hit a new high. -Consumer trust is low but they don't have a choice. Many smaller real estate developers aren't too keen on keeping quality of product high. Many are trying to get a quick turnaround and move onto the next project. There isn't much regulation in this space and companies are looking for more profit.There exists consumer protection, it is still faulty, but is continuously improving. Most debt is government currently. Interest rates are rising and less and less Chinese residents are willing to take on loans.

Human Capital31 English

Labor Markets

-English by employees is spoken well in Hong Kong and in Shanghai, however property employees may not be fluent in English.-There is cheap labor available and the average real estate company only has 30 employees. There are few large companies with large market share, many smaller companies exists with as little as 10 employees.

31. Web. www.stats.gov.cn › Home › Publications 32. Web. www.businessweek.com/articles/2013-02-24/china-inches-toward-a-slimmer-bureaucracy33. Web. http://en.steelhome.cn/

Despite its recent political progress, the political & ethical climate in China is still a high concern in the RE IndustryCorruption in the Chinese Real Estate industry is commonplace and a very serious issue.20 The RE Industry has become one of the most corrupt economic sectors in China. Government involvement in the RE development process has created a chain of corrupt practices, an array of constantly changing red-tape regulation that often end with large payouts of money.16

Political Risk: Moderate Difficulty in balancing the communist government vs. capitalistic economic centers.14 As industrial centers continue to develop, income inequality is growing and may

factor to civil unrest13 . AMB ranks China low in Social Stability at 1.5.15

Increased local government debt in response to global recession may pose risk.14

WER TOP 5PROBLEMATIC

FACTORS18

1. Access to Financing 2. Inflation3. Political Instability 4. Inefficient

Government5. Corruption

The level of regulation for the Commercial Real Estate industry in China is heavy and increasing. Firms must tailor their investment strategy to adhere to the constantly changing regulations.17 In the last decade the Chinese Government has implemented a number of policies such as: • Raising interest rates- suppresses overheated real estate market19

• Limiting land purchases- difficult for developers to purchase land19

• Entry of foreign investment- must enter through joint domestic ventures • Lending controls- Stricter credit regulations for real estate development19

13. Data. Euromonitor International: PASSPORT. Web. March 1, 201314. Roberts, Dexter. “Pollution, Risk Are ‘Downside of China’s Blind Expansion’” Bloomberg BusinessWeek. March 5, 201215. AMB. “Country Risk Report: China” October 26, 201216. Zhu, Jiangnan. Fed Working Paper Series Number FE20110174. The Shadow or Skyscrapers: Real Estate Corruption in China. March 2012 17. Data. IBIS World, Real Estate Development in China. Web. October 2012. 18. Schaub, Klaus. World Economic Forum: The Global Competiveness Report 2012-201319. Data. IBIS World, Commercial Real Estate in China. Web. October 2012

20. Ross, Joel. “China They Are Racing Past Us”. The Globe St.

Comparative Overview of CompaniesKerry Properties (China)• Property investment and development company primarily focused in Hong Kong and the PRC.21

50.92 Million Sq.Ft. with over 80% as properties under development as of December 2009. 21

Utilizes a multi-domestic strategic configuration, which is especially apparent in its Australia and Philippines property portfolios. 21

Simon Property Group (United States)Largest public REIT in the U.S. specializing in shopping malls and retail centers in the U.S. 22

Holds 340 retail properties and 245 Million Sq. Ft. of real-estate. 22

Utilizes a multi-domestic strategic configuration outside of the U.S. via joint ventures in countries such as Japan, Malaysia, Mexico and South Korea. 23

Unibail-Rodamco (France)European-focused public commercial property investment firm with nearly 75% of its portfolio is

invested in retail properties. 24

Owns approximately 100 shopping centers with more than 3 Million Sq. Meters (or 32.292 Million Sq. Ft.) in 13 countries. 24

Utilizes a multi-domestic strategic configuration with corporate offices in different European countries with relative autonomy in their governmental structure. 25

21. "Area of Business | Kerry Properties Limited." Area of Business | Kerry Properties Limited. N.p., n.d. Web. 01 Apr. 2013.http://www.kerryprops.com/kpl/en/about_us/area_of_business.html 22. Simon Property Group Company Report. Hoovers. Webt. 29 Mar 201323. "Simon Malls | More Choices - About Simon Property Group." Simon Malls | More Choices - About Simon Property Group. N.p., n.d. Web. 01 Apr. 2013.http://www.simon.com/about_simon/24. Unibail Rodamco Company Report. Hoovers. Webt. 29 Mar 201325. "Group." Unibail-Rodamco -. N.p., n.d. Web. 01 Apr. 2013. http://www.unibail-rodamco.com/W/do/centre/group

Discussion of diversification and vertical integration of compared companies

Kerry Properties Simon Property Group Unibail-Rodamco Diversification The firm specializes in both

commercial real estate investment and development, and supply chain management logistics in Asia [website1]

In addition to holding and managing shopping malls and retail centers, the company has diversified into advertising, marketing services, and commercial office leasing [website3]

This French commercial property investment firm ‘sticks to their guns’ and has not diversified outside of its core competencies; development, investment and operations/management of shopping centers, office buildings, and convention and exhibition venues. [website5]

Vertical Integration

Kerry Properties is a fully-integrated ‘one-stop-shop’ with both property development and management expertise. Within its logistics business, Kerry Logistics Network Limited, the firm is able to leverage their position as the largest warehouse owner/operator in HK to strengthen its logistic service offerings. [website 2]

Simon’s main focus is shopping malls and retail centers. The firm has fully vertically integrated operations to maximize control and efficiency. They develop, own and manage the shopping malls and outlet centers within their portfolio. [website4]

Company has vertically integrated the value creation chain in their real-estate operations. By focusing on development, investment and management areas, U-R is able to be a ‘one-stop-shop’ for their investors. [website5]

26. "Logistics Network | Kerry Properties Limited." Logistics Network | Kerry Properties Limited. N.p., n.d. Web. 01 Apr. 2013. http://www.kerryprops.com/kpl/en/logistics_network.html27. "Area of Business | Kerry Properties Limited." Area of Business | Kerry Properties Limited. N.p., n.d. Web. 01 Apr. 2013.http://www.kerryprops.com/kpl/en/about_us/area_of_business.html28. "Simon Malls | More Choices - About Simon Property Group." Simon Malls | More Choices - About Simon Property Group. N.p., n.d. Web. 01 Apr. 2013.http://www.simon.com/about_simon/29. Company Report. Hoovers. Webt. 29 Mar 2013 subscriber.hoovers.com.libproxy.usc.edu/H/company360/overview.html?companyId=1658200000000030. "Group." Unibail-Rodamco -. N.p., n.d. Web. 01 Apr. 2013. http://www.unibail-rodamco.com/W/do/centre/group

Analysis of Effect on Companies of Entering Into Another Industry

Kerry Properties Simon Property Group Unabail-Rodamco • Kerry Properties owns a subsidiary

named Kerry Logistics which provides supply chain consulting services.

• Kerry Logistics is able to leverage Kerry Properties’ holdings of warehouse properties to provide a wider and better range of logistics services.27

• Kerry Logistics has a great reputation as a respectable, award-winning, and reliable logistics solution firm. 28

• Simon Property Group primary focus is development but they have been able to expand their service offering to their retail clients.

• Simon provides advertising and experiential marketing as well as gift card offerings. 23

• By leveraging social, digital and brick & mortar media, Simon Property Group is able to provide significant experiential value to its shopping mall patrons. 29

• Gift card offerings are redeemable at any of its shopping mall and outlet locations. The continuity of the card allows Simon to better serve its retailer-base. 23

• Unabail-Rodamco has not expanded into adjacent real estate supported industries.

• The firm has maintain a commercial real estate focus because it believes that any missteps in industries that it is not comfortable with my hurt its strong brand. 25

• U-R feels that it is in a great competitive position relative to its European commercial real-estate peers and there is no compelling need to diversify its operations outside of commercial real-estate .

27. "Logistics Network | Kerry Properties Limited." Logistics Network | Kerry Properties Limited. N.p., n.d. Web. 01 Apr. 2013. http://www.kerryprops.com/kpl/en/logistics_network.hml28 "Outstanding Industry Achievements." Awards. N.p., n.d. Web. 01 Apr. 2013.http://www.kerrylogistics.com/eng/OUR_COMPANY/About_Us/awards/awards.jsp 23. "Simon Malls | More Choices - About Simon Property Group." Simon Malls | More Choices - About Simon Property Group. N.p., n.d. Web. 01 Apr. 2013.http://www.simon.com/about_simon/29 "Advertising & Experiential Marketing." Simon Property Group. N.p., n.d. Web. 01 Apr. 2013.http://www.simon.com/about_simon/marketing/25. "Group." Unibail-Rodamco -. N.p., n.d. Web. 01 Apr. 2013. http://www.unibail-rodamco.com/W/do/centre/group

Citations1. Data. IBIS World, Global Commercial Real Estate. Web. October 2012.

http://clients1.ibisworld.com.libproxy.usc.edu/reports/gl/industry/default.aspx?entid=18662. Pitzner, Abigail. Global Market Overview Q32012. Rep. N.p.: CBRE Global Research and Consulting. Web. www.cbre.com .3. Fiorila, Kapas, Liang. “A Bird’s Eye View of Global Real Estate Markets: 2012 Update” Prudential Real Estate Advisors, 20124. Data. Google Finance. Market Capitalization Values. March 28, 20135. “Global Market Perspectives” Jones Lang & LaSalle, First Quarter 20136. “Marketview: Asia Pacific Capital Markets” CBRE Global Research & Consultin, Q4 20127. Fuller, Steven. “How Office, Industrial and Retail Development and Construction Contributed to the U.S. Economy in 2011”

NAIOP Research Foundation. May 20128. Global Market Outlook, Trends in Real Estate Private Equity. Rep. Ernst & Young, 2012. Web.9. 1. Wassener, Bettina. "China Raises Rates Again in an Effort to Slow Inflation." The New York Times. The New York Times,

07 July 2011. Web. 01 Apr. 2013.10. 2. "China's Trillion-Dollar Construction Industry Boosted by Increased Government Housing." China's Trillion-Dollar

Construction Industry Boosted by Increased Government Housing. N.p., n.d. Web. 01 Apr. 2013.11. Commercial Real Estate in China. Rep. IBISWorld, Oct.-Nov. 2012. Web. 01 Apr. 2013.12. 4. "Urban Population Growth (annual %) in China." Urban Population Growth (annual %) in China. N.p., n.d. Web. 01 Apr.

2013.13. Data. Euromonitor International: PASSPORT. Web. March 1, 201314. Roberts, Dexter. “Pollution, Risk Are ‘Downside of China’s Blind Expansion’” Bloomberg BusinessWeek. March 5, 201215. AMB. “Country Risk Report: China” October 26, 201216. Zhu, Jiangnan. Fed Working Paper Series Number FE20110174. The Shadow or Skyscrapers: Real Estate Corruption in

China. March 2012

Citations Continued17. Data. IBIS World, Real Estate Development in China. Web. October 2012. 18. Schaub, Klaus. World Economic Forum: The Global Competiveness Report 2012-201319. Data. IBIS World, Commercial Real Estate in China. Web. October 2012 20. Ross, Joel. “China They Are Racing Past Us”. The Globe St.21. "Area of Business | Kerry Properties Limited." Area of Business | Kerry Properties Limited. N.p., n.d. Web. 01 21. Apr. 2013. http://www.kerryprops.com/kpl/en/about_us/area_of_business.html22. Simon Property Group Company Report. Hoovers. Webt. 29 Mar 201323. "Simon Malls | More Choices - About Simon Property Group." Simon Malls | More Choices - About Simon 24. Property Group. N.p., n.d. Web. 01 Apr. 2013.http://www.simon.com/about_simon/24. Unibail Rodamco Company Report. Hoovers. Webt. 29 Mar 201325. "Group." Unibail-Rodamco -. N.p., n.d. Web. 01 Apr. 2013. http://www.unibail-rodamco.com/W/do/centre/group26. "Logistics Network | Kerry Properties Limited." Logistics Network | Kerry Properties Limited. N.p., n.d. Web. 01 Apr. 2013. 28. http://www.kerryprops.com/kpl/en/logistics_network.html27. "Logistics Network | Kerry Properties Limited." Logistics Network | Kerry Properties Limited. N.p., n.d. Web. 01 Apr. 2013.

http://www.kerryprops.com/kpl/en/logistics_network.html28. "Outstanding Industry Achievements." Awards. N.p., n.d. Web. 01 Apr. 2013. http://www.kerrylogistics.com/eng/OUR_COMPANY/About_Us/awards/awards.jsp 29. "Advertising & Experiential Marketing." Simon Property Group. N.p., n.d. Web. 01 Apr. 2013.

http://www.simon.com/about_simon/marketing/30. http://graphics.wsj.com/documents/ECONTRACKER_CHINA/index.php#ind=houseprice 31. Web. www.stats.gov.cn › Home › Publications 32. Web. www.businessweek.com/articles/2013-02-24/china-inches-toward-a-slimmer-bureaucracy33. Web. http://en.steelhome.cn/