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Borrok: real estate part of global village.

The world is becoming a "global village, and in real estate, we have to serve our clients across the street and throughout the global village, now and into the next century," said Cushman & Wakefield Vice Chairman Charles Borrok in a speech before the New York University Real Estate Institute in New York City recently.

"With the advent of the fax machine and swifter telecommunications and computer technology, the world is becoming a smaller place," said Borrok. "More and more, the role of the broker is full service, from finding the site, assisting in clearing the title, to helping with the zoning, to finding the tenants, to project development and managing the property."

Borrok then stated Cushman & Wakefield's philosophy toward serving its clients on an international basis. The firm has "long recognized that real estate is an international business. Several years ago we formed a strategic alliance with the London based property company Healey & Baker. We have more recently formed similar alliances with Royal Lo Page of Canada and Grupo Comercial Inmobiliario of Mexico."

Borrok then outlined the real estate market conditions in North and South America and Eastern Europe. The highlights of his comments follow:

* Canada: "The anticipated signing of NAFTA by the United States, Canada and Mexico will open significant new opportunities for investment."

* Mexico: "Multinational companies are now looking at Mexico as a friendly climate for business. There is no professional brokerage industry or real estate talent in Mexico on an institutional basis, however."

* Chile: "Because of the limited size of the country, and therefore limited opportunities for further investment, this year has seen considerable activity by Chilean companies investing outside their own country."

* Argentina: "Very little development has occurred over the last 12 years in Argentina. The unsteady political situation has affected economic development. A number of multinationals such as IBM and Shell are located in Buenos Aires. However, it is very difficult to locate quality office space."

* Brazil: "Inflation is running at 30 percent, and as a result, lenders and looking for four year leases with frequent indexing with a trigger mechanism that every time inflation goes over 25 percent, the rent is adjusted."

* Eastern Europe: "Unlike in Western Europe, where leases generally run five to 10 years, Eastern Europe has no recognized pattern of lease duration. Companies are generally taking one week and one month license agreements. They go month to month and see how their business develops."
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Title Annotation:Cushman and Wakefield Inc. vice chairman Charles Borrok addresses New York University Real Estate Institute
Publication:Real Estate Weekly
Date:Mar 31, 1993
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