Office and industrial yields edged lower in Q4 as the recovery in Scandinavian investment took hold. However, the pandemic continued to weigh on occupiers, with retail rents declining further in most markets and office rents taking a hit in Oslo and Stockholm. Looking ahead, there are downside risks to the economic recovery given the slower-than-expected pace of the vaccine rollout. But the Scandinavian and Swiss economies are still likely to return to pre-virus levels of activity more quickly than most other parts of Western Europe. This should support occupier demand, although continued growth in online spending and firms adjusting their office space will weigh on retail and office performance.
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