UK Commercial Property Focus Will London be the catalyst for the next property correction? Overpricing is a more salient concern for London’s property markets than at the national level. However, there are cyclical and structural factors that currently support more aggressive pricing in the... 1st March 2016 · 1 min read
UK Commercial Property Data Response Lending to commercial property (Jan.) Banks and building societies reduced their net loans to the commercial property sector in January. However, with banks and building societies’ exposure to commercial property holding fairly constant... 29th February 2016 · 1 min read
Europe Commercial Property Focus How much scope is there for European office rents to rise? In recent years, across Europe, yield compression has been by far the largest driver of capital value growth. Yet property yields are fast approaching their limit. That means we now need to see a pick... 29th February 2016 · 1 min read
Europe Commercial Property Update Recent volatility in Portuguese bond yields a worrying sign for property Given the historic correlation between property yields in Lisbon and Portuguese government bond yields, the recent spike in bond yields seems worrying. Although a correction in property yields does... 25th February 2016 · 1 min read
Europe Commercial Property Update Will falling rents push up prime Oslo office yields? Compounded by a negative rental growth outlook, Oslo offices appear overvalued. However, with foreign investors likely to be lured by the historically weak kroner and domestic investors keen on prime... 23rd February 2016 · 1 min read
Europe Commercial Property Chart Pack Strongest year for capital values since 2006 Office rental values recorded their strongest quarterly gain since 2011 in Q4. Yet at the all-property level, yield compression, rather than rental growth, proved to be the main driver of capital... 19th February 2016 · 1 min read
UK Commercial Property Outlook Yield floor in sight The turbulence in commodity and equity markets since the turn of the year has intensified concerns about the outlook for commercial property in the UK. And the longer the market dislocations persist... 19th February 2016 · 1 min read
Non-Euro Europe Commercial Property Chart Pack Slowing economic growth weighing on rental growth The fourth quarter brought clearer signs of an economic slowdown in non-euro-zone Western Europe. And this economic weakness may help to explain the limited extent of rental value growth in Q4 across... 18th February 2016 · 1 min read
UK Commercial Property Data Response Commercial property investment (Jan) Commercial property transaction activity was muted in January. Encouragingly, however, sentiment towards UK property seems healthy. And if we are correct about the UK’s positive macroeconomic... 12th February 2016 · 1 min read
Europe Commercial Property Update Office rents in Frankfurt will underperform in 2016 Frankfurt’s office sector has struggled to shake off the legacy of the credit crunch and structural changes in the local labour market. Add in the likely dampening impact of the recent falls in equity... 12th February 2016 · 1 min read
Europe Commercial Property Update European Prime Offices Begin to Look Fully Valued The falls in office yields witnessed in 2015, alongside the stabilisation of yields for other asset classes, mean that European office property no longer looks undervalued. Indeed, whilst the majority... 11th February 2016 · 1 min read
Europe Commercial Property Update Flat retail rents in Spain are not a sign of things to come Retail rents in Madrid and Barcelona were flat in Q4. Yet the steady outlook for consumption, coupled with strong growth in tourism, suggests that rents will resume their upward trend this year. 4th February 2016 · 1 min read
Europe Commercial Property Update How big are the risks to retail rental growth in Stockholm? We do not expect either a slowing in house price growth or the newly-built Mall of Scandinavia to derail our retail rental value growth forecasts for Stockholm. As a result, we believe that in terms... 29th January 2016 · 1 min read
Europe Commercial Property Update Will higher corporate credit spreads produce a spike in property yields? In view of their strong past relationship, the latest jump in corporate bond yields could be a sign of an imminent turning point for European property markets. However, we are inclined to look through... 26th January 2016 · 1 min read
Europe Commercial Property Update Berlin becomes Germany’s biggest investment market Berlin became Germany’s largest investment market in 2015, with investment growth of 120%, far outpacing that in the other major cities. Despite Berlin ranking far above Frankfurt in surveys of... 25th January 2016 · 1 min read
UK Commercial Property Update Are real estate equities signalling an imminent correction? The recent slump in real estate equity prices appears to be signalling that a 6% fall in all-property capital values could be in store for H1 2016. However, we are confident that job creation and... 22nd January 2016 · 1 min read
