The DNA of Real Estate covers the key office, logistics and high street destinations within Europe and provide an overview of their quarterly performances, giving you a summary of prime rents and yields for the respective cities and markets.
- European offices and logistics both demonstrate 0.7% growth in Q3
- Offices post the strongest year-on-year growth at 2.5%
- Logistics rental growth at its strongest since 2008 and continues to show biggest yield compression
Annual growth in European office rents was above 2% for a fifth consecutive quarter, yet it is still 1.4% off its pre-crisis level in Q3 2008.
Logistics continues to show strong performance in both leasing and investment markets with the strongest quarterly rental growth, on a par with offices and by far the strongest yield compression, as the prime European logistics yield was 5bps lower over the quarter and 41bps year-on-year to 5.9%.
High Street Retail
Only four of the 41 retail markets monitored posted growth this quarter - Prague (4.5%), Stockholm (3.7%), London (2.3%) and Helsinki (1.4%). This limited growth was offset by the double-digit drop in Istanbul to result in an overall 0.4% fall in Europe. In contrast to its blooming office and logistics sectors, German retail rents in the leading five cities have remained static in the past 18 months.
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