Filtered by Subscriptions: Europe Commercial Property Use setting Europe Commercial Property
With investors now forced to fund an additional 4% in transaction costs, Ireland’s decision to increase stamp duty on commercial property will add to the slowdown in the market. Furthermore, with buyers now likely to discount capital values, prime yields …
13th October 2017
Economic and survey data suggest that prime office rents in Zurich may have finally found a floor. But with new developments and refurbishments equivalent to around 5% of current stock due to complete over the next few of years, we think prime rents are …
12th October 2017
The Moscow office market is showing signs of greater balance. With the potential for rental growth, and further falls in prime yields, several years of double-digit total returns could be on the cards. … Strong returns in prospect for Moscow …
6th October 2017
Prime retail property in Budapest was undervalued as little as a year ago. However, with yields having fallen substantially in the last 12 months, there is no value left and we see little upside to capital values after 2018, despite our expectations for …
5th October 2017
The surprisingly strong economic recovery in the Netherlands is giving investors the confidence to move up the risk curve, following a long period in which prime property was the only ticket in town. … Improving outlook for secondary assets in …
29th September 2017
Already upbeat German consumers are likely to benefit from tax cuts ahead. But with prime rental growth seemingly held back by structural factors, total returns are likely to be poor over the 2018-21 period. … Should we be more optimistic on German …
27th September 2017
Rental growth has been the driver of total returns in Dublin commercial property. But with the largest rental increases behind us, yield shifts will now play a greater role. Given the likelihood of larger falls in industrial yields, we think the sector …
22nd September 2017
Tighter monetary policy in the UK, US and euro-zone in the next couple of years will undoubtedly cause risk-free rates to rise. However, given that property’s yield spread against risk-free rates is still elevated, we think there’s room for a gradual …
21st September 2017
A surge in occupier demand has boosted industrial rents in Milan and Rome. But while there is scope for rents to move higher, we don’t think that the current pace of growth will be sustained. … Where next for Italian industrial …
14th September 2017
The prospects for European prime property are still positive for the remainder of 2017 and 2018. However, we think that the gradual creep upwards of government bond yields will eventually cause a re-think by investors, most likely in late 2018 or early …
11th September 2017
European occupier markets have continued to benefit from the strengthening economic environment. Low risk-free rates still provide some limited scope for prime yields to fall. But as government bond yields eventually rise further, this will start to put …
Retailers in Lisbon are currently benefiting from a number of tailwinds. With occupiers focusing more on high street locations and limited prime vacancy, we have revised up our rental growth forecasts. … Increasing focus on high streets boosts prime rents …
1st September 2017
A slowdown in German employment growth is set to take to the edge off office occupier demand growth. But with supply staying tight, prime office rental growth will ease, rather than grind to a halt. … Softer demand isn’t a disaster for German office …
25th August 2017
Industrial rents in the Czech Republic have climbed this year on the back of declining vacancy and may see another step up in 2018. However, low yields – and high capital values – will support developers’ expected returns and will mean that new supply …
22nd August 2017
Small rises in core government bond yields, along with similar-sized falls in equity dividend yields and limited commercial property yield falls mean that property valuations were mostly unchanged. That said, around a third of the markets we cover look …
18th August 2017
Demand for office space in Madrid’s CBD has seen prime rents rise by 5% so far this year. And while completions are on the rise, this is being offset by withdrawals. With the market likely to tighten faster than previously expected, we have increased our …
17th August 2017
Economic growth has been strong in non-euro-zone Europe this quarter and this has fed into solid leasing activity in the occupier markets. However, this has mostly not translated into rental value growth. At the same time, despite strong capital flows …
14th August 2017
Euro-zone investment jumped 31% in Q2 compared to the same period last year. However, there are signs that suggest that the market is cooling, with the quarter recording the weakest decline in prime yields in the past year. As a result, capital value …
Competition from prime shopping centres and questions about affordability mean that prime high street rents in Vienna will struggle to keep pace with inflation over the coming years, leading to further declines in real rental values. … Vienna retail rents …
9th August 2017
Office space in Paris’ CBD is in short supply and tenants are having to compete for larger floorplates. This will push prime rental values up at above-inflation rates of 3% and 4% respectively in 2018 and 2019. … Steady first half cloaks the positive …
4th August 2017
With better rental growth prospects for prime property in Italy, compared to secondary, we think that a continued focus by investors on prime assets will see yields edge down over the next 18 months. … Investors focus on prime property in …
2nd August 2017
The 15% annual rise in European (ex. UK) Q2 investment was wholly dependent on the logistics sector. Indeed, activity in the office and retail sectors fell. But with investors in a buoyant mood, 2017 is likely to be another record year for investment, …
27th July 2017
Very low Grade A vacancy and steady net absorption are likely to see Brussels rental growth forecasts for this year blown out of the water. We think rents could climb by 12% and a further 3% in 2018. … Brussels prime office rental prospects looking …
25th July 2017
Improving occupier demand and falling vacancy rates in Copenhagen bode well for office rents. This means that investors can feel more confident in taking advantage of higher yields on secondary stock in central locations in order to generate higher …
21st July 2017
Perhaps against the prevailing perception, rather than retail, it has been the manufacturing sector that has been a key driver of rising industrial demand in Germany over recent years. With a supportive economic outlook for occupier demand, we envisage …
18th July 2017
European investment activity is likely to have risen again in Q2. But, while retail funds are competing aggressively for core assets, opportunistic investors appear to be rotating out of low-yielding prime assets. We see this as an attempt to achieve …
14th July 2017
Athens recorded some of the highest property total returns in the euro-zone last year. And with the potential for prime rents to edge up and yields to fall, it could be one of the best performing markets in the 2017-21 period. But with debt relief talks …
12th July 2017
Strong economic growth in Sweden means that, with only a limited quantity of prime product for sale, investors are being pushed up the risk curve in order to get their capital into the market. … Investors moving up the risk curve in …
7th July 2017
The yield spread between prime and secondary Spanish retail property has widened recently. With a slowdown in consumer spending on the cards, a cautious approach to secondary assets makes sense. … Investors cautious about secondary retail assets in …
5th July 2017
Early indications suggest that prime yields fell again in Q2, which is likely to make property valuations look even more stretched. While this may increase the perception that yields cannot fall further, we think that they will continue to drift lower for …
3rd July 2017
With President Macron’s parliamentary majority putting him firmly in control in Paris, the prospects for the French economy are pretty good. The economic recovery will continue to boost firms’ confidence, meaning that the outlook for French occupier …
28th June 2017
With a large pipeline, concerns about future rental growth are probably behind the flat-lining of prime Dublin office yields. But while rental growth will ease, we don’t think rents are about to fall. … Are investors questioning rental growth prospects in …
27th June 2017
Amsterdam office vacancy has dropped from 17% to 8%, but we expect it to fall to 4% by 2019 as limited completions are outstripped by stock removals. This will drive a 15% lift in prime rents and will also support rental growth in the other Randstad …
23rd June 2017
Prime rents in Istanbul have come under pressure from various headwinds recently. And with the prospect of further rises in vacancy, competition for tenants is likely to see rents move lower still. … Prime rents in Istanbul have further to …
22nd June 2017
The Finnish economy is benefitting from a cyclical recovery in the euro-zone and Russia. This is likely to attract more core capital to Helsinki, given its appealing yield and solid rental growth prospects. … Improved economic outlook in Finland emboldens …
16th June 2017
A pick-up in the Swiss economy should improve demand for office space. However, the size of the development pipeline means that it could take longer than expected before prime office rents in Geneva and Zurich find a floor. … Further headwinds for Swiss …
13th June 2017
In recent years, strong occupier demand has helped prime office rents in Bucharest hold up in the face of a healthy development. But by end-2018, completions totalling 18% of existing stock are expected to be delivered. As a result we think rents are more …
9th June 2017
Shopping centre development in Warsaw is picking up pace. While the city’s growing wealth and low vacancy rate mean that it can accommodate more retail floorspace, we have nudged down our rental growth forecasts for the next couple of years in order to …
8th June 2017
Prime euro-zone property yields still have scope to fall over the next 18 months. However, with a stronger outlook for the euro-zone economy, we have increased our forecasts for government bond yields. As result, we now expect property yields to find a …
2nd June 2017
In the last few months, economic growth prospects have improved across Europe, boding well for rental growth and pointing to sharper falls in property yields in the next 12-18 months. But the improved economic growth outlook also means that monetary …
Prime German retail rents have stagnated recently, in spite of a healthy economic backdrop. In the absence of a pick-up in occupier demand, it is difficult to see strong rental growth in the years ahead. … What is behind the stagnation in German retail …
26th May 2017
Higher government bond yields and further falls in commercial property yields in Q1 mean that property valuations have begun to look increasingly stretched. Whereas 23% of the markets we cover looked overvalued at the end of Q4 2016, 37% look overvalued …
24th May 2017
Strong employment growth in the euro-zone augurs well for office occupier demand. Coupled with limited net additions, we think euro-zone prime office rents will move higher in the years ahead. … Will strong demand continue to lift euro-zone office …
19th May 2017
Investment in euro-zone commercial property rose by 11% y/y in Q1, boosted by a surge in activity in Germany and Spain. And with yields falling, and capital values rising, at close to the rates seen in recent quarters, the market has seemingly found a …
12th May 2017
Economic performance has typically improved in the last few months, but this has only translated into rental growth in a few locations. Sentiment in Norway and Russia saw notable improvements, although the converse is true in Turkey, which continued to …
Prime office rents in Milan recorded their biggest quarterly gain since 2008 in Q1, with a lack of quality space a key driver. But with completions starting to rise, we don’t expect this to be repeated. … Jump in Milan office rents unlikely to be …
4th May 2017
Investment activity in Mainland Europe started the year strongly and demand looks similarly robust so far in Q2. And as occupier fundamentals continue to strengthen, we expect valuations will become increasingly stretched in the next 12 months, as strong …
3rd May 2017
A jump in the development pipeline means that the outlook for office rental growth in Vienna is now weaker than we previously thought. And with valuations starting to look a little stretched, we think that capital values are likely to stagnate next year …
27th April 2017
With Portugal’s economy starting to recovery, we expect prime Lisbon office rents to begin a sustained shift higher, supported by rising occupier demand and a limited development pipeline. … Prime Lisbon office rents set for a new upward …
25th April 2017
With the Russian economy returning to growth, a gradual improvement in Moscow occupier markets should support a further recovery in investment volumes, pushing prime yields down. … Improving economy bodes well for Moscow real …
21st April 2017
