Investment activity and rents have felt the impact of the virus, with the retail sector bearing the brunt. Indeed, after falling by around 2% this year, we think that Scandinavian retail rents will end 2020 4% lower than in 2019. And with rising vacancy in offices, we think that the falls in rents have further to go in H2, with the likelihood of more remote working slowing the post-2020 recovery. In sharp contrast, the industrial sector has so far had a good crisis. Beyond 2020, with COVID-19 highlighting the need for logistics infrastructure and the greater shift to online shopping, we think that rents will continue to grow at a fast clip. As a result, industrial returns in Scandinavia and Switzerland are set to outperform not only offices and retail but also the euro-zone and CEE over the next five years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services