Europe Commercial Property Update

Larger rate cuts increase the scope for property yield falls

The larger and faster pace of ECB rate cuts we now expect means euro-zone government bond yields are likely to be lower in the coming years than previously forecast. This is positive for property...

19th November 2024 · 3 mins read

US Commercial Property Update

Shout it from the rooftops, CRE pricing has troughed

It is increasingly clear to us that pricing in all three regions we forecast has bottomed, even if appraisals are yet to reflect that in mainland Europe and the US. And although we expect recent...

14th November 2024 · 4 mins read

Europe Commercial Property Update

Consensus still expect office rent slowdown, CE more upbeat

The strength of prime office rent growth in Europe in recent years has surprised forecasters, however there is broad agreement that rental growth will slow next year. We share that view, but are less...

14th November 2024 · 4 mins read

Europe Commercial Property Update

Risks to European hotel resurgence

A strong recovery in occupancy and operating performance following the pandemic has helped European hotels to outperform other sectors on average since 2022. However, this rebound is now fading and...

8th November 2024 · 4 mins read

Europe Commercial Property Update

Q3 RICS: Weak occupier demand a risk to recovery

The latest RICS survey showed that investor sentiment continued to improve in Europe in Q3, adding to the growing evidence that the market has bottomed. However, declines in reported occupier demand...

31st October 2024 · 4 mins read

Event

CRE Drop-In: The residential outlook – Europe vs the US and the case for outperformance

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Residential’s growing share of investor portfolios speaks to the buzz around its potential to keep providing outsized returns. But will residential continue to deliver?

Europe Commercial Property Update

French residential property returns to lag the pack

Softer rental prospects, less scope for yields to fall and lower income returns look set to weigh on French residential property returns compared to Germany, the UK and the US in the coming years.

29th October 2024 · 3 mins read

Europe Commercial Property Update

Dutch EPC evidence highlights risk from stranded assets

There is growing concern about how the green transition may create stranded real estate assets, impacting negatively on both lenders and investors. We can get some idea of the scale of the problem in...

23rd October 2024 · 4 mins read

UK Commercial Property Update

Are we underestimating the capital value recovery?

The strong recovery in property equities prices across the UK, euro-zone and US implies larger rises in commercial property capital values by the end of the year than we are currently forecasting...

22nd October 2024 · 3 mins read

Europe Commercial Property Update

Dutch logistics will continue to outperform

Dutch prime logistics rent growth is set to be among the highest in the region over the next few years. That reflects both strong prospects for leasing, thanks to a bright economic outlook and greater...

17th October 2024 · 3 mins read

Europe Commercial Property Update

Rental growth to converge in Spain’s top high streets

Prime high street rental growth in Barcelona has outpaced Madrid since late 2022. However, we think rental growth will converge in the coming years as tourism numbers fall back to pre-pandemic levels...

10th October 2024 · 3 mins read

US Commercial Property Update

What could a Trump win mean for commercial real estate?

On the back of client questions, we have put together this short primer on the potential impact of a second Trump term on commercial real estate markets, both in the US and elsewhere. The key takeaway...

7th October 2024 · 4 mins read

Europe Commercial Property Update

Out-of-town retail will continue to beat the street

Non-high street retail subsectors have seen a stronger rental recovery from post-pandemic lows than high street shops. And we think this outperformance will continue given tighter availability and...

3rd October 2024 · 4 mins read

Europe Commercial Property Update

German logistics to go from leader to laggard

Tight supply conditions have boosted German prime logistics rents despite weak occupier demand. This looks set to continue over the next year or two given completions pipelines for the German markets...

26th September 2024 · 4 mins read

UK Commercial Property Update

Will remote work go into reverse?

We doubt the announcement by Amazon that it is requiring office-based workers to return full-time marks the start of a reversal in the remote work share. It is far from clear that requiring five days...

18th September 2024 · 4 mins read