Filtered by Subscriptions: Europe Commercial Property Use setting Europe Commercial Property
Strong occupier demand and higher rents have helped to lift Berlin’s office development pipeline. On its own, the current level of construction is likely to result in a sharp slowdown in rental growth, but add in the office development pipeline and the …
22nd February 2018
Although there was little movement in government bond yields and equity dividend yields in Q4, further declines in property yields mean that valuations have generally worsened this quarter. Over 40% of all markets that we cover are now overvalued and this …
16th February 2018
Last year, prime office rents in Lisbon recorded their strongest gain since the financial crisis. While occupier conditions are set to stay landlord friendly, slower employment growth and higher office completions mean that we expect the rate of rental …
15th February 2018
Investment activity across the euro-zone reached a new record in 2017. However, fourth quarter activity fell in annual terms for the first time since the financial crisis. Investor appetite for retail assets continues to wane; the sector saw investment …
9th February 2018
Solid economic growth in both Western and Emerging Europe appears to have continued into Q4. This kept expansionary activity amongst occupiers at strong levels. This, in turn, has driven vacancy rates lower almost across the board in the last 12 months, …
The last five years have seen prime office rents in Dublin fully recover from their post-crisis lows. But we now think that a lower natural rate of vacancy and growing pipeline will see rents start to fall in 2019. … Calling time on the recovery in Dublin …
6th February 2018
The political crisis in Catalonia has not prevented prime office rents in Barcelona from rising in Q4. We see prime rents rising again in both Barcelona and Madrid this year and next, though the fading strength of Spain’s economic recovery will take the …
1st February 2018
The latest RICS global commercial property monitor for Q4 2017 indicates that there has been no significant change to the upbeat mood across European markets compared to Q3. This is perhaps not too surprising given the buoyant economic backdrop. Yet the …
29th January 2018
The combination of strong consumer spending growth and rising tourism appears to have been behind the sharp rise in prime retail rents in Milan and Rome last year. With these conditions set to continue, 2018 should be another good year for rents. … A …
25th January 2018
Following another record year for commercial property investment in continental Europe in 2017, we expect investment activity to fall back this year. What’s more, with high interest rates and slower economic growth further ahead, we think that this will …
22nd January 2018
Industrial take-up in the four main German cities continues to rise. Yet prime rents in Berlin, Frankfurt, Hamburg and Munich have been largely unchanged for 18 months. Even so, with occupier fundamentals continuing to favour landlords, the outlook for …
12th January 2018
Reduced capital raising totals for the second consecutive year and a decrease in the proportion of funds meeting their fund-raising targets hint at pricing concerns amongst investors. … European property looks increasingly …
10th January 2018
Rising consumer prosperity and confidence in Belgium will support decent retailer activity in the next couple of years. However, plentiful supply in Brussels will keep rental growth subdued, allowing Antwerp to outperform. … Brussels simmering, but …
5th January 2018
After three consecutive years of mostly yield-driven double-digit capital growth, the outlook for European commercial property in 2018 is less positive – we believe that the prime market has now passed its peak in all aspects – investment activity, the …
3rd January 2018
Prime rental value growth in Oslo is likely to enjoy a bumper year in 2018, with rental values set to climb by around 8%. But the consensus has yet to pick up on the momentum that is starting to build. … Oslo office rents to surprise to the upside in …
20th December 2017
Solid economic growth prospects in most of Europe bode well for occupier demand and prime rents in the next few years. However, better growth is likely to be a double-edged sword for commercial property, with monetary policy starting to tighten and bond …
15th December 2017
Against a backdrop of solid economic growth, the outlook for occupier demand and rental growth is encouraging. But with prime property yields close to finding a floor, and tighter monetary policy on the horizon, the days of strong, yield-driven, capital …
Even with prime commercial property yields in Germany plumbing new lows, investment activity is still strong. But with tighter monetary policy on the horizon, property yields are at threat from rising risk-free rates. With a poor outlook for capital value …
11th December 2017
Solid economic growth, structural changes, as well as tightening availability and limited land for development will support particularly robust rental growth in Paris in the next few years, where we have upgraded our forecasts. Rents in Lyon will also …
8th December 2017
With some of the tightest office markets, core European cities are set to see the best rates of rental growth over the 2018-21 period. However, with lower current yields and a weaker outlook for capital values, total returns will be relatively poor. But …
1st December 2017
Prime German retail rents are coming under pressure from softer occupier demand and online competition, despite the strong consumer sector. We now expect rents to stagnate over the next couple of years, though some further weakness can’t be ruled out. … …
29th November 2017
The European economic recovery has been extended into the final quarter of the year, yet inflation remains well below target in most economies. As a result, occupier demand continued in a strong vein, driving office vacancy rates lower, although prime …
23rd November 2017
Investment across the euro-zone in Q3 reached a record for a third quarter, supported by increasing amounts of foreign capital. However, with the prime all-property yield falling by just 5bps, the same decline as in Q2, investors appear to have entered a …
Falls in many government bond yields and in equity dividend yields this quarter meant that despite small falls in property yields, overall valuation scores improved slightly this quarter. Nevertheless, more than a third of all markets that we cover look …
15th November 2017
Following the Spanish government’s decision to invoke Article 155 of the constitution and take control of the regional administration of Catalonia, the political temperature in the region has tempered somewhat. So now is a good time to look at what recent …
10th November 2017
Taking account of the ECB’s dovish tone at its last meeting, we have lowered our Bund yield forecasts for the next few years. As a result, the Bank’s stance bodes well for commercial property yields, which are likely to come under less upward pressure in …
7th November 2017
Solid but slowing rates of employment growth in Sweden will provide continued impetus for Stockholm office rents. This will keep Stockholm towards the top of the pack in our total return rankings for the next four years, meaning that investors able to get …
2nd November 2017
French investment activity appears to have peaked and prime yield falls have slowed markedly. Whilst it’s likely to be true that this reflects a lack of large, prime stock, we expect 2016 to have marked the peak of the investment cycle in France and …
26th October 2017
Q3 investment in mainland European commercial property was the highest on record for a third quarter, despite pricing concerns. At the same time, a lack of prime assets in key markets appears to be lifting demand in second-tier markets. … Valuation …
24th October 2017
E-commerce is taking an increasing share of total retail sales across Europe, but its reach and impact in the short-to-medium-term will vary by country and across different retailer types. … How does the impact of e-commerce vary in …
20th October 2017
The improving economic environment in Norway, coupled with strong urban population growth, as well as low inflation and interest rates, will support real retail rental growth in Oslo high streets in the next few years, despite a marked softening in the …
16th October 2017
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
