ARTICLES LABELLED WITH TAG Europe

While the future of the office industry was unpredictable in the early days of the pandemic, companies are doubling down on their investments in strategic office locations and preparing for a future in which hybrid work could become mainstream. Large employers still see the office as a central pillar of work arrangements and have made strategic acquisitions in the recent period.

Savills Investment Management, the international real estate investment manager, transacted more than €3.4 billion globally in 2021, including c. €2.6 billion in Europe and c. €670 million in Asia. Globally, transactions included around €2.1 billion of acquisitions and around €1.2 billion of disposals, resulting in a net investment of c. €900 million. The firm now manages approximately €24.8 billion in assets under management (AuM) as of September 2021

The Q4 2021 results of the RICS Global Commercial Property Monitor indicate a continued improvement in market sentiment across Europe compared to the previous quarters, with progress particularly evident on the investment side of the market. That said, conditions remain polarised at the sector level, with the latest feedback still signalling a challenging set of circumstances for retail while industrials continue to post robust expectations for the twelve months ahead.

Investors brushed aside concerns about the impact of the omicron variant to make the final quarter one of the biggest of 2021 for European property, with major markets posting near-record trading volumes, according to the latest capital markets snapshot for Europe, the Middle East and Africa (EMEA) released by Colliers.

An increasing number of value-add investment opportunities will emerge in 2022, said Savills, as decarbonising buildings and ESG-requirements create redevelopment opportunities across Europe.

Garbe Institutional Capital is launching a new institutional club-deal strategy investing in science- & technology-led real estate: the "Garbe Science and Technology Real Estate Fund 1" (Garbe STREF #1). The alternative investment fund has a total target investment volume of around €400 million.

Despite almost all European office employees working from home last year the empty workplaces did not lead to a reduction in the expenditure that companies had to fulfil had the workforce been in the office. The average costs per FTE fell by only 2% and amounted to €9,468. These findings have been published by Colliers, Occupier Cost Index (OCI), which comprises data from 29 countries, 3,990 buildings, 26.1 million square meters of office space and 1.96 million FTEs.

CBRE Investment Management and Hillwood Investment Properties announced a definitive agreement whereby entities affiliated with CBRE Investment Management will acquire a 57-asset, 2.6 million sqm portfolio of state-of-the-art logistics properties in the United States and Europe valued at approximately $4.9 billion from Hillwood.

Following years of turmoil in retail, 2022 will bring rental growth and increased investment capital to the sector across Europe, according to Savills.

Warehouse occupiers are prioritising the shortening of supply chains to mitigate business risks, a trend that is likely to dominate the demand for warehouse space in Europe for the next three years, reports Savills and Tritax EuroBox plc, a leading investor in European logistics real estate. According to Savills, Poland becomes a target for larger Foreign Direct Investment facilities.