Europe Commercial Property Valuation Monitor

Valuations near turning point as property yields spike

Despite a sharp rise in property yields, renewed increases in alternative asset yields led to a further deterioration in European property valuations in Q3. All markets were overvalued except for...

30th November 2022 · 6 mins read

UK Commercial Property Valuation Monitor

Rising property yields help valuations stabilise

Commercial property valuations began to stabilise in Q3, as a large rise in property yields helped offset a further rise in alternative asset yields. And with the reversal of the “mini-Budget” meaning...

10th November 2022 · 7 mins read

UK Housing Market Outlook

Spike in mortgage rates to trigger price correction

The jump in market interest rates following the ill-advised “mini” budget has forced quoted mortgage rates up to over 5%, a level not seen since 2009. That will turn the slowdown in demand already...

31st October 2022 · 25 mins read

US Commercial Property Data Response

NCREIF Property Index (Q3 2022)

As expected, NCREIF all-property total returns dropped back significantly in Q3, to just 0.6% q/q, as investor demand pared back in response to higher alternative asset yields and the poor outlook for...

26th October 2022 · 3 mins read

Event

US Real Estate Drop-In: What recession will mean for real estate returns

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With a US recession looming, Kiran Raichura and Andrew Burrell held a briefing on the impact of weaker growth on commercial real estate returns and answering your questions.

US Commercial Property Update

Which apartment markets look most overvalued?

A forward-looking fair value analysis of the 17 apartment metros that we forecast suggests that Phoenix and the Western markets look most overvalued. This insight underpins the changes to our yield...

14th September 2022 · 3 mins read

Europe Commercial Property Valuation Monitor

All sectors overvalued despite rise in property yields

Despite a rise in property yields, increases in alternative asset yields led to a further deterioration in European property valuations in Q2. (See Chart 1.) While industrial and office valuations...

2nd September 2022 · 6 mins read

US Commercial Property Valuation Monitor

Another deterioration but valuations may have troughed

Despite a stabilisation in property yields, valuation scores fell again in Q2 on the back of further rises in alternative asset yields. Apartment and industrial pricing look most stretched, but also...

26th August 2022 · 7 mins read

US Commercial Property Data Response

NCREIF Property Index (Q2 2022)

NCREIF total returns fell back again in Q2, dropping to 3.2% q/q from their end-2021 peak of over 6%, as higher interest rates and weaker growth hit property performance. We expect the remainder of...

26th July 2022 · 3 mins read

US Commercial Property Update

Calling the top for US commercial real estate

Indicators that include a recently released investor sentiment survey and a sharp fall in REIT prices since the start of the year support our updated view that capital values will go into reverse in...

24th June 2022 · 3 mins read

US Commercial Property Valuation Monitor

Biggest quarterly drop in property valuations on record

There was a huge deterioration in property valuations in Q1, reflecting the sharp rises in alternative asset yields recorded since the start of the year. The size of those yield rises mostly dwarfed...

31st May 2022 · 7 mins read

US Commercial Property Data Response

NCREIF Property Index (Q1 2022)

Total returns on the NCREIF index were strong again in Q1, at 5.3% q/q. That was led by industrial, where they reached 11% q/q, with apartments at just over 5% and the other sectors all lagging at...

26th April 2022 · 3 mins read

US Commercial Property Data Response

NCREIF Property Index (Q4 2021)

The NCREIF index saw its strongest ever quarterly price appreciation in Q4, with values up by 5.1% q/q, driving a quarterly return of 6.2%. That took annual returns to 17.7%, led by industrial, where...

26th January 2022 · 3 mins read

US Commercial Property Data Response

NCREIF Property Index (Q3 2021)

The NCREIF index recorded a huge 5.2% quarterly return in Q3 thanks to further improvement in all sectors. With no sign of any let-up in investment demand, that puts annual returns on course to exceed...

26th October 2021 · 3 mins read

US Commercial Property Valuation Monitor

Property valuations stabilise in Q2

Following a sharp deterioration in the previous quarter, property valuations held steady in Q2. But while changes so far in Q3 point to only a slight worsening in valuations, we expect Treasury yields...

23rd August 2021 · 6 mins read