Washington D.C. Office Market Affected by Political Uncertainty, Yet Still Relatively Strong

The Washington, D.C. metro area continues its economic expansion, but at a slower pace than in prior expansion periods, according to a third quarter 2012 office market/economic report put out by Delta Associates and Transwestern. This slower growth is due partially to the uncertainty associated with possible sequestration and the end of Bush Era-tax cuts, tentatively scheduled for January, 2013, according to the report. 

In spite of fears about possible sequestration and the ending of tax cuts, there is continuing growth in the Washington metro, because of the strength of the regional economy, according to the Delta Associates/Transwestern report. Among those strengths are a highly-educated workforce, economic diversity (compared to the 1970s when there was more dependence on the federal government), growing technology and healthcare  industries, a strong housing market with sustained values and a plethora of corporate  and association headquarters, many of which have moved into the area in the past five years, says Elizabeth Norton, senior vice president and Mid-Atlantic research director at Delta Associates.

Regardless of these strengths, however, the Washington, D.C. area saw a payroll employment increase of only 24,300 in the 12 months ending July 31st, compared to a long-term annual average of 39,800. These statistics contrast with job growth during a typical expansionary period of 60,000 to 80,000, making this past year's job growth look anemic by comparison. Still, the unemployment rate for the Washington metro was 5.6% in July 2012, down from 6.0% the year before. This compares to the national rate of 8.3% in July 2012. The national rate went down to 8.1% in August 2012.

The Washington metro area office market had negative net absorption and a rising vacancy rate during the first three quarters of 2012, because demand was not enough to offset tenants vacating space, according to the Delta/Transwestern report. This was the result of several factors, including Base Realignment and Closure ( BRAC) Commission-related tenants moving out of privately-owned office space into government-owned space in addition to the fears about sequestration. Plus, many other kinds of tenants are consolidating and/or downsizing their operations.

"We expect the share of government leasing to remain limited for the foreseeable future, as Congress scrutinizes any large lease deals and agencies are forced to do more with less," although private sector leasing should gradually start to rise, according to the Delta Associates/Transwestern report. But significant growth in demand will not be felt until 2014 or 2015, when there will be more need for Class A space, says Norton.

Meanwhile, some General Services Administration (GSA) tenants are relocating to military bases, a trend that will be "continuous for the next handful of years," says Norton. Military bases are owned, rather than leased, which saves money for the government.

Johannesburg Fund Raises $250 Million for Mixed-Use Projects in Nigeria‚ Ghana and Angola

In an unprecedented move, Johannesburg-based RMB Westport, South Africa's second-largest financial-services company, announced the property unit of its investment banking arm has raised $250 million to develop real estate in West Africa.

The initial sites will be in Nigeria, Ghana and  Angola. Retail and mixed-use development will be the primary objective. Africa currently has strong demand for high-grade retail and commercial properties, according to Independent Online, a division of Independent Newspapers (Pty) Ltd. based in Cape Town, South Africa.

RMB Westport opened its doors in 2008 when Rand Merchant Bank (RMB)‚ through its Real Estate Investment Banking division entered into a joint venture with the Westport Property Group.

In an e-mailed company statement to the media, Michael O'Malley‚ Director of RMB Westport, said his company "believes in the African growth story. Over the past decade‚ African economic output has more than tripled‚ which is one of the many reasons we think that Africa today holds the greatest overall investment potential for all frontier markets globally."

O'Malley says the discovery of oil in Ghana will probably lead to a further increase in investor interest and subsequent demand for office and industrial space in West Africa. O'Malley has spent the past 20 years working on retail and mixed-use projects in 12 African countries.

RMB Westport is no newcomer to Africa. Some of RMB Westport's biggest projects, at various levels of completion, include Icon House and Accra Financial Centre (A-grade buildings in Ghana); Ikeja City Mall (the largest shopping mall in Nigeria); Osapa Retail (Phase I) and Project Wings (Office and retail property in Nigeria) and recently the Junction Shopping Center (retail property in Accra‚ Ghana).

Westport chief financial officer Alan Wilson states,  "Africa currently has the world's highest rate of urbanization. This migration‚ along with Africa's growing middle-class further reinforces the need for high grade office space and retail buildings in urban areas."

For example, Wilson says "the city of Luanda was built for a population of 300,000 and currently has over six million inhabitants."

Wilson says the International Monetary Fund (IMF) recently forecast Nigeria's economy to grow by 6.9% - a rate which‚ if sustained‚ will eventually lead to Nigeria overtaking South Africa as the largest economy in Africa.

2012 Honda Accord Review

The Geneva Auto Show has a special surprise this year for auto fans as the long anticipated 2012 Honda Accord was unveiled. Honda has used its past successes to prove that some serious market competition will be offered by the 2012 Accord line. Having modifications to the design to the interior and exterior, the fuel efficiency has been increased and the CO2 output has been decreased by Honda without risking the performance that is expected by the lovers of Honda.  When looking at it at first, the 2012 Accord seems like a beauty, but upon taking a closer inspection you will notice some additions which are far greater.

Once again, Honda has shown that functionality and beauty can be combined to create a car that makes heads turn. A remodelled front grill is sported b the 2012 Accord which not just adds a certain element of quality but also has a cooling system that is also remodelled which ensures that the powerful engine always run efficiently.  Active cornering technology is included in the premium model along with bi-Xenon headlights and the bumpers have been tweaked to have enhanced tail and front lights. This only goes to show that safety was not sacrificed for design in Honda’s making of the 2012 Accord.
Based on the measurement of its interior space, the mid size sedan of 4.95 metres is almost full size and 5 passengers can easily be seated in spatial comfort. Though boot space is hindered by the gooseneck hinges, it is large. A multilink suspension in the rear and a traditional double wishbone front dictates the set up of the chassis. It also has a gear ratio steering system that varies and should help with in-city manoeuvring as well as with stability that is high speed. Disc brakes are feature on all four wheels whether it be the 17” alloy wheels or the 16” steel wheels.
In all of the NHTSA’s combined ratings of safety categories, a 5-star rating was earned by the Sedan. 6 airbags, active front restraint, ABS with Electronic Brake Distribution and Vehicle Stability Assist all make up its safety features. Honda’s Advanced Engineering Body Structure that diffuses the impact of force in the event of a face on collision, mostly where SUVs counteract, is also a part of the Accord.
Audio controls for steering mount and cruise control as well as steering column that is telescopic are included in all models. Leather interiors, dual zone auto air conditioning, Active Noise Cancellation, auto dimming rear view mirror, a sunroof with a smoked glass, 8-way full power driver seat adjustment, Bluetooth and a 6CD premium sound system with a USB jack are other options which are included. 8-inch screens that utilizes a jog control dial, displays rear view camera visuals and an available navigation system. It has an innovative dual zone auto air conditioner adjust temperatures using sensors with GPS.
The design improvements of Honda are not solely limited to the exterior. When examining the interior, auto fans will see a modern yet stylish design that guarantees to make the 2012 Honda Accord an enjoyable ride for drivers.

New 2012 Renault Clio review

• Fourth-generation Clio supermini driven
• Five-door only
• On sale October, priced from £10,500 (est)

The 2012 Renault Clio is an all-new supermini built specifically to take sales from rivals in this extremely competitive sector.

That will be no easy task, with cars such as the Ford Fiesta, Volkswagen Polo and newly-launched Peugeot 208 to compete with.

It's impossible to overestimate the importance of a new Clio to Renault, because the current car is one of the few Renault models still held in high regard by UK buyers. If this new Clio fails, it could sound the death knell for the company on these shores.

Fortunately, the new car's showroom appeal exceeds that of the previous Clio, due to its sharp exterior styling and an interior that's vastly improved, both in terms of quality and design sophistication.

What's the 2012 Renault Clio like to drive?
Eventually, there will be a wide range of petrol and diesel engines to choose from, including an optimised version of the 1.5-litre diesel that will average 88.3mpg and emits just 83g/km of CO2, a 1.2-litre mated to a six-speed dual-clutch gearbox, and a 200bhp 1.6-litre turbo for the hot Renaultsport version.



For now, though, we've driven only the 89bhp 1.5-litre diesel and the new 89bhp 0.9-litre three-cylinder turbo petrol.

The three-cylinder engine sounds a little clattery at tickover, but very little mechanical vibration seeps through to the cabin. Once settled at a steady pace you'll struggle to tell it apart from a more cultured four-cylinder engine.

Performance is more purposeful than forceful; the engine picks up revs smartly and there's a decent amount of punch when the turbo comes into play at around 2500rpm. Throw in a few inclines, though, and you'll need to be smart with your downshifts and keep the accelerator pressed to the floor to maintain progress.

The additional cost of the 1.5-litre diesel engine means it's likely to have less appeal. That's a shame because its 162lb ft of torque, willingness to rev and smooth mechanical refinement really suit this latest Clio.

The chassis is a development of the outgoing model's, albeit with a wider track to improve grip and quicker steering to sharpen turn-in to corners.

However, the most noticeable improvement is the consistency in the weighting of the steering. While the previous Clio's felt excessively light at low speed and vague on faster roads, the new model's set-up has a meatier feel at all speeds.



The Clio might not have the supreme handling precision of a Ford Fiesta, but that's not to say it's short on engagement. If anything, it feels rather soft and a little nose-heavy when you push it to extremes, but it's still pretty game and can be made to flow through a series of bends with enough vitality to put a smile on your face.