Our commercial property consultants combine the market-making of management consultants with the accountability of professional advisors. We work with occupiers, investors and developers of office, industrial and logistic, retail and hotel property.
We provide: strategic advice and execution for property investment, sales and leasing; tenant representation, corporate services; facilities, property and project management; appraisal and valuation; development services; energy and sustainability services, and research and consulting.
Values rise across all asset classes at a faster pace than seen in the previous quarter. The All Property Index strengthened to 2.5% on the quarter, driven by value growth in Germany, Netherlands, Southern Europe and Ireland in particular.
The Industrial sector was the leading performer, with value growth of 3.4% in Q4. Retail and Office grew at a higher rate of 2.3% and 2.2% respectively, compared to Q3.
Grouping equivalent yields into quartiles, we see that there was yield compression across all quartiles. The European market is continuing to see yield compression across most asset types. This is likely to be a sign of the limited availability of top quality assets along with the historically low interest rates.
Over the quarter, Germany and Netherlands were the best performing at the All Property level, both rising by 3.6%.
Poland is -2% over the year, but other CEE countries are similar to the rest of Europe and c. +6% on average
All Property values rose by 1.9% in the UK on the quarter which followed an improved trend compared to the preceding two quarters of 1.4% in Q3 and 1.2% in Q2. Industrial is the main driver of this increase.
Q3 has continued the trend of strong investment in the sector. There has been over $18 billion of M&A investment in the data centre sector globally in H1 2017; more than the previous three years combined. The global trend is very evident in Europe.
Interest in the European sector from investors is driven by the consistently high levels of take-up and new development over the past two years. Only two years ago a total of 15MW of take-up per quarter was considered the par across the four markets. However, over the last eight quarters we have seen an average of 32MW per quarter.
The 2017 CBRE European Occupier survey covered 131 companies. Nearly 90% of the companies surveyed are headquartered in either Europe or North America, and two-thirds have a remit that is either global or EMEA-wide. The survey covers a range of sectors, with four dominant components: technology and telecoms, banking and finance, professional services and manufacturing.
Now in its fifth year, the EMEA Fit Out Cost Guide is widely regarded as an industry benchmark. It provides market-leading insights and data to clients, providing invaluable support when it comes to location and fit out decisions. The EMEA edition is part of a global suite of guides, designed to support our clients wherever they do business.
This year's edition covers 64 locations. Key features including different specifications, technology and furniture costs, and moves and relocations, are continued, while details around workplace have been updated in line with current trends.
The traditional and agile layouts featured in this year’s Guide have also been updated, to reflect client demands, including innovative space and furniture solutions.
• Total nominal value of the European Commercial Real Estate (CRE) investment debt decreased slightly over the course of 2016 from €1.14 trillion to €1.06 trillion, which is largely attributed to reduced levels of investment transactions in 2016
• We estimate that new debt issued increased from €68 billion in 2013 to €125 billion in 2015, while maintaining at €116 billion in 2016
• Additionally, the amount of debt retired in 2016 is also in line with the new origination levels over the past year
• 2016 was the first year, since post-GFC loan sale activity commenced in Europe, that real estate secured loan sale activity fell
• In 2017, we expect loan sale activity to pick up from 2016, albeit the activity will be relatively concentrated across several key jurisdictions, for instance Italy and Spain
Investment activity in the CEE region was stable. The leading position in 2017 was held by Poland, generating a total investment volume slightly above € 5 billion;
CBRE Baltics figures show CRE investment of more than €838 million in the Baltic region countries for 2017, representing a 3.4% decrease year on year;
In 2017 the most attractive asset type in the Baltics proved to be the retail sector (41%), leaving the office sector in second place with 30.5% of all investment volume; interest in logistics has increased; The leading position in 2017 was held by Lithuania (44%), whilst 33% of all investment was generated in Estonia, leaving Latvia in third position with 23%;
In 2017 the largest investment of €127 m was completed by CPA:17 – Global, acquiring a 70 % stake in the real estate investment vehicle UAB Baltic Retail Properties, followed by the Nehatu logistics park transaction in Tallinn;
Ca. 70% of all investments were made in the Baltics’ capital cities. The remaining investments were completed in regional cities (Klaipeda, Narva, Tartu Daugavpils, Kaunas, Palanga, Liepaja and others), mainly as portfolio transactions in the retail and DIY sectors;
In 2017 the industrial sector, with a share of 20.4%, showed the strongest increase (by 27.5%), when compared with 2016.
In the years 2012-2014 ca. 80% of the investment volume was of Baltic and Nordic origin, as opposed to years 2015-2017 when more than 45% of the investments were from the US, Western Europe or elsewhere in the world. We are seeing increasing interest from Western Europe, which may result in transactions this year.
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