The latest figures from CB Richard Ellis (CBRE) indicate that rents and yields generated by prime commercial real estate in Europe held steady during the third quarter of this year. Rents for industrial and office properties rose by 0.1 per cent over the three-month period, while retail rents increased by 0.7 per cent during the same timeframe. In terms of yields, industrial and retail premises were "unchanged", while offices recorded a marginal drop.
Director of Europe, Middle East and Africa research at CBRE Richard Holberton noted that fears over the debt crisis in the eurozone have "dominated" this quarter. He stated: "This has clearly heightened occupier caution towards new building commitments and tempered rental recovery." Meanwhile, he observed that tenants are increasingly seeking out modern, prime properties, which is enhancing the gap between these and secondary assets.
Earlier this week, a report published by Jones Lang LaSalle revealed that there has been little new capital invested in the industrial sector in Europe. Volumes were up by just three per cent over the first half of this year, the firm discovered, while a rapid slowdown in activity was recorded during May and June.