Commercial real estate investors are showing greater appetite for risk in Europe as the overall market continues to grow and the recovery in both Ireland and Spain gathers pace, according to the latest data from global property advisor CBRE.
The trend of increasing commercial real estate investment that has been emerging in Europe over the course of this year continued in Q3 2013. Continue reading
Emerging markets are offering interesting investment opportunities in terms of shopping centre development and existing assets, according to the latest Global ViewPoint released by CBRE.
It suggests that lack of suitable shopping centre product, particularly pronounced in mature markets across the globe, is prompting greater expansion into emerging markets by shopping centre developers and investors than is the case for other commercial property types. Continue reading
Encouraged by tentative signs of improved occupational conditions, Knight Frank said it continued to see a diverse range of buyers in the market and expected current momentum to continue for the rest of the year.
Its UK Shopping Centre Investment report highlighted another strong quarter with robust number of deals in Q3.
CKD Galbraith reports significant signs of improvement in the commercial office sector as Edinburgh sees its strongest quarterly uptake in office space since the start of the recession in 2008.
The independent Scottish property consultancy found that overall take up in Q3 (July to September 2013) will be in excess of 270,000 sq ft – a 225% increase on the previous quarter (at approximately 120,000 sq ft). Continue reading
The first half of 2013 brought encouraging signs of improved confidence in Spain’s commercial property sector, according to Knight Frank’s inaugural Spain Commercial Property Market Review.
There was a sharp rise in the take-up of Madrid office space in H1, while increased numbers of investors have been actively seeking opportunities in the Spanish market. Continue reading
Improved occupier sentiment is driving increasing rental value growth, particularly within the Central London office and retail market, according to the latest Commercial Property Market Outlook from Cluttons.
Although the wider UK regions continue to witness limited rental value growth, offices remain the strongest performing commercial sector, underpinned by intense demand and robust performance within Central London and the south east. Continue reading
UK commercial property showed significant improvement in June, with total returns of 0.7% at the “All Property” level, delivering 1.9% over the second quarter of the year, according to CBRE’s latest UK Monthly Index. Capital values continued to grow, increasing by 0.2% in June and 0.3% over the last three months.
“All Offices” recorded a total return of 1.0% and capital value growth of 0.5% in June. Central London offices performed well again with total returns of 1.1% driven by an increase in capital values of 0.7% over the month. Continue reading
Take-up of Central London office space in Q2 2013 increased by 32% when compared with the previous quarter, according to the latest research by global property consultancy CBRE.
Three deals over 100,000 sq ft transacted over the course of the quarter: Continue reading
Elsewhere, unprofitable shops continue to close and a number of operators remain under threat from tough trading conditions and high levels of debt.
Knight Frank research indicates that recent failures of HMV, Jessops and Blockbuster will push national vacancy rates up and put further downward pressure on rental values. However, Knight Frank said it was seeing renewed interest and aggressive bidding for the best stores within these portfolios. It expects to see further polarisation of both high streets and shopping centres between the regionally dominant and sub-prime locations.
In the investment market, investors have continued to target prime locations Continue reading
An easing in commercial real estate credit markets and the persuasive valuation case for UK commercial property should mean that prices for the market as a whole will be broadly stable in the next 12 months, in contrast to a fall of approximately 3% over 2012 (source: IPD Quarterly Index for all property).
Total returns are therefore likely to be dominated by income return, currently at around 6%. Given the attractive level of yield, whilst sentiment is likely to remain relatively volatile, LGP sees upside risk to medium-term total returns from a positive repricing of property as an asset class.
Martin said: "Three Continue reading