Industrial Yields Viewpoint January 2017
Industrial yields in Europe have fallen to new lows, and we argue that they are now structurally lower. There are three main reasons for this: a changed ownership profile, enduring relative value and strong fundamental drivers.
What Brexit means for European Property
Following the UK’s decision to leave the EU, Research and Strategy have written a paper on what Brexit means for European Property. The paper seeks to evaluate the severity of the recent economic events and analyse whether there is reason to readjust our property outlook and strategy.
U.S. Urbanization Trends: Investment Implications for Commercial Real Estate
Millennials are quickly becoming an integral part of the workforce, and U.S. urbanization trends are evolving. This is creating pockets of opportunity across the country for commercial real estate investors. This paper explores those opportunities and offers our recommendations for commercial real estate investment.
What Brexit Means for UK Property
Bank of England Governor Mark Carney could not have been any more explicit: Britain faces its biggest domestic risk if it decides to leave the European Union. With the referendum vote now set for June 23rd, the risks associated with Brexit are beginning to register with property investors from both near and far. Deal volumes in the first quarter of the year have slowed and raising capital for near term deployment is increasingly difficult. CBRE Global Investors takes the risks surrounding Brexit seriously and in recent weeks we have been dedicating significant effort asking some very important “what if” questions. In this paper, we provide a backdrop to the current debate, present our analysis of the economic implications of a Brexit, make the link to property performance and consider how to position UK portfolios in the months preceding the vote as well as after a possible exit.
European Retail View - Meet our New Consumers
With retail attempting to keep pace with a growing consumer culture that is underpinned by technology and convenience, it is no surprise that we are seeing consumers change, along with their shopping habits. We’ve identified four emerging types of consumers that will influence how we think about our centres going forward.
Broadening your City Scope to Dynamic Retail Locations
The tool analyses 126 cities with over 250,000 inhabitants across European markets and has been created to support retailers and investors who want to look at a wider range of markets for opportunities as well as those looking to increase their real estate risk. The tool can break down city characteristics, such as affluence, tourism, retail supply and demographics and can filter by retail investment volumes and weighted expenditure.
The Case for German Logistics
While the German industrial sector offers potential opportunity, particular focus should be given to logistics assets that are used for transportation, distribution and storage.Now is the right time to be a provider of best-in-class logistics facilities in key German markets.
What's in a number? How to Achieve the Optimum Portfolio Size
Diversification is a broad state which all investors rightly aspire to across the asset classes, including real estate. However, the simplicity of the concept belies the complications of achieving it: for example, how many assets does an investor actually need to buy to be diversified? The answer does not only determine the size of private real estate portfolios, but also the more fundamental decision of how to invest in private real estate. This could range from smaller amounts of capital for a stake in a fund-of-funds to a sizable equity commitment for a separate account.
Home and Away: The Merits of International Real Estate Allocation
Investors in relatively large real estate markets often claim that they have enough investment product which exists to an adequate depth, that a nationally spread portfolio provides them with sufficient risk reduction and diversification. However, while large domestic markets can offer many opportunities to diversify across individual buildings, we demonstrate in this paper that international markets offer considerably more advantages than most large mature countries can bring domestically focused investors.
The Oil Price Shock: Implications for the U.S. Real Estate Market
The recent plunge in oil prices has altered the outlook for the U.S. and international economies. It also has implications for property market fundamentals and commercial real estate pricing. The impacts will vary considerably by region and sector. Downside risks are concentrated in a few metros with a large portion of their employment base in the energy industries. For most metros and property types, lower oil prices are at least a mild positive....