Europe Commercial Property Update Falls in Spanish rental values are not just a temporary phase Dublin aside, prime commercial property rental values have fallen further in Barcelona and Madrid than in any other major euro-zone city. That seems consistent with the dramatic rise in Spanish... 28th April 2009 · 1 min read
UK Commercial Property Update Does a fast start to the rental downturn imply a quicker recovery? To date, the recession has triggered a larger fall in commercial property rental values than past experience suggests is typical. The abrupt drop in financial and business services employment, with... 24th April 2009 · 1 min read
Europe Commercial Property Update Property equities support relative optimism on France & Netherlands Real estate equity markets currently appear to be anticipating that commercial property capital values will fare worse in Germany and Italy this year than in France and the Netherlands. Those broad... 24th April 2009 · 1 min read
Europe Commercial Property Update Sharp interest rate cuts won’t help Turkish commercial property The Central Bank of Turkey’s most recent interest rate cut was the second in a row to surprise markets in its scale (75bps, to 9.75% on 16th April). However, unexpectedly sharp rate cuts do not mean... 20th April 2009 · 1 min read
Europe Commercial Property Update Resilience of German property yields at odds with the macro outlook To date, German property yields have proved remarkably resilient to the forces pushing property yields sharply higher in the rest of Europe. But, in our view, German property yields do not reflect the... 17th April 2009 · 1 min read
UK Commercial Property Update Industrial rents could fall most in Midlands and Northern England We expect all-industrial rental values to decline by 9% this year and by a further 13% in 2010. However, the experience of the early 1990s suggests that the worst performing regions could see annual... 16th April 2009 · 1 min read
Europe Commercial Property Focus The outlook for office markets in European financial centres Of the four main financial hubs of Europe, we think it is Paris that will deliver the best total returns for offices. An annual average of around minus 10% over the next two years will be better than... 15th April 2009 · 1 min read
Europe Commercial Property Update Falling currencies add to rental value gloom in emerging Europe As well as facing a deep and painful recession, occupiers in emerging Europe have been hit by falling currencies, increasing the burden of rental payments denominated in euros or dollars. While there... 6th April 2009 · 1 min read
UK Commercial Property Focus What do recent policy initiatives mean for property? In our view, neither Government intervention in the banking sector nor quantitative easing (QE) is likely to alter the subdued outlook for commercial property lending. Not only will gross new lending... 30th March 2009 · 1 min read
Europe Commercial Property Update Political tensions point to higher property yields in emerging Europe The collapse of the Czech government on Tuesday night signals that the crisis in emerging Europe has entered a new phase in which political risks will come to the fore. The economic implications may... 26th March 2009 · 1 min read
UK Commercial Property Focus Is the medium-term outlook for hotels still relatively favourable? We continue to believe that IPD hotel total returns will be worse than the all-property average in 2009. However, in recognition of the changed economic circumstances, by contrast with what we... 13th March 2009 · 1 min read
Europe Commercial Property Update Recession to take a larger toll on rental values across the euro-zone The rapid deterioration in the euro-zone economic outlook over the past three or four months has left our existing rental value forecasts looking too optimistic. Indeed, taking the euro-zone as a... 26th February 2009 · 1 min read
Europe Commercial Property Update Euro-zone risk-free rates: are German bund yields the right measure? In our analysis of euro-zone commercial property markets, we base our analysis of valuations on a comparison between property yields and the yield on a 10-year German bund, regardless of whether that... 19th February 2009 · 1 min read
UK Commercial Property Outlook Falling rents to become the key driver of the correction this year (Q1 09) The economic outlook has deteriorated even further over the past three months. As a result, we now expect GDP to contract by 3% this year and by a further 1% in 2010. Accordingly, we have downgraded... 17th February 2009 · 1 min read
UK Commercial Property Update West End rents suffer most in 2008; the outlook is even bleaker We have long expected commercial property rental values to fall and, in our view, the decline of almost 1.5%y/y in 2008 is just the tip of the iceberg. With GDP set to shrink by 3% this year and by 1%... 3rd February 2009 · 1 min read
Europe Commercial Property Update Returns in Emerging Europe more vulnerable to the industrial slump The collapse in industrial production that has been seen across Europe suggests that the economic downturn is rapidly gathering speed. This is bad news for property investors. In our view, investors... 16th January 2009 · 1 min read