Europe Commercial Property Update Evaluating energy transition risk to European offices Anticipation of legislation requiring minimum standards of energy efficiency is already impacting CRE values as investors price in transition risk and this pressure is likely to ramp up in the coming... 19th October 2023 · 4 mins read
UK Commercial Property Chart Pack UK Commercial Property Chart Pack (Oct. 23) After a brief respite earlier this year, property yields are once again on the rise, driven by a further increase in gilt yields. We don’t expect a repeat of the surge seen last year, but we also... 19th October 2023 · 1 min read
US Commercial Property Office Metros Outlook Office value falls to exceed 50% in worst-hit cities The outlook for offices is negative across all markets, but we expect substantial differences across the 17 metros we forecast. We now think Seattle, San Francisco and Austin will see vacancy rise by... 11th October 2023 · 13 mins read
US Commercial Property Update Flexible offices unlikely to capitalise on hybrid working IWG’s record revenues in the first half of this year may suggest that flexible offices are the answer for many firms as hybrid working cements itself as the ‘new normal’. However, we don’t think... 4th October 2023 · 5 mins read
Europe Commercial Property Outlook Decline in values to match GFC; offices fare worst With economic activity weakening, we expect rental growth to continue trending downwards over the next year. At the same time, valuations remain stretched despite property yields continuing to rise at... 4th October 2023 · 36 mins read
US Commercial Property Update No support from job growth for Chicago and NYC offices Office-based jobs are on course to underperform total jobs this year for the first time since 2009 and there is a growing risk this could be repeated in 2024, though that is not yet our central... 3rd October 2023 · 4 mins read
Europe Commercial Property Update Softer German office supply won’t stop vacancy rising The weakness in German construction activity has raised questions about whether a slowdown in new office supply could offset the weakness in demand and prevent a rise in vacancy. But we think that on... 26th September 2023 · 3 mins read
US Commercial Property Outlook Capital values to fall through 2024 - retail to outperform With the economy showing signs of slowing and transaction volumes likely to stay low in H2 2023, a tough 6-12 months lies in store for commercial real estate. We still expect cap rates to rise on the... 25th September 2023 · 22 mins read
UK Commercial Property Chart Pack UK Commercial Property Chart Pack (Sep. 23) After a brief respite earlier this year, property yields are once again on the rise, driven by a further increase in gilt yields. We don’t expect a repeat of the surge seen last year, but we also... 22nd September 2023 · 1 min read
Europe Commercial Property Update Flex office woes not systemic, but concerns remain The problems of WeWork, which have intensified in recent months, do not look reflective of significant distress in the wider flexible office market. However, flex has yet to see much of a boost from... 19th September 2023 · 3 mins read
UK Commercial Property Update Record fall in passing rents highlights office weakness The surprising strength of office market rents looks to reflect the increased use of incentives. Indeed, passing rents have seen a sharp decline, with all-office annual growth recently falling to a... 15th September 2023 · 4 mins read
US Commercial Property Update Uncovering the factors impacting downtown recoveries Data on cell phone usage suggest that cities with a high share of professional, scientific and technical occupations and long commute times are typically associated with poorer downtown recoveries... 12th September 2023 · 3 mins read
Europe Commercial Property Update Weak macro outlook to weigh on Italian office rents After a strong 2022, annual office rental growth has slowed in Italy in H1 2023. And given the contraction in employment we are forecasting, together with increased supply, we think prime rents will... 12th September 2023 · 3 mins read
Europe Commercial Property Update End of Budapest office underperformance in sight The Budapest office market has underperformed in recent years, with rents lagging the rest of the region. While some weakness is likely for the rest of this year, the outlook is improving. With a more... 7th September 2023 · 3 mins read
US Commercial Property Update Denver’s poor jobs performance should be short-lived Denver’s poor jobs market performance over the last year appears to have been driven by a combination of a downsizing in Central Bank staff and layoffs in its large telecoms sector. But the former’s... 5th September 2023 · 3 mins read
US Commercial Property Chart Pack US Commercial Property Chart Pack (Q3 2023) All-property values are down by 10% from their mid-2022 peaks, but we think there is still another 15% to come by the end of 2024. Much of that price fall will be driven by a rise in cap rates in... 23rd August 2023 · 1 min read