The retail market saw the strongest yield compression in December, with an average fall of 20bp, followed by industrial at 17bp and offices at 3bp. The recovery since the high point for yields meanwhile has been strongest for retail warehouses followed by industrial, shops and then national
offices. London offices and shopping centres have to date seen a smaller correction, which for the former may reflect the fact that they saw yields increase by less than the market average in the
As a result, our clients are already looking into how this affects their business. This business briefing highlights the key areas of change and explains what the practical implications might be for both our commercial real estate clients and our role within that industry. It is intended to shed light on the impact of this proposed standard and how it will affect the decision-making process for commercial leases. The chart below identifies key areas of impact under the proposed standard.
Investing in certain Asian markets where inflationary conditions are likely to persist remains a logical strategy says Choonbeng Ang, Director – Research & Business Analytics Asia, in this latest podcast from the Knowledge Center.
With the economy balanced precariously between inflation and deflation, the outcome will depend on the ability of monetary and fiscal authorities to revive the economy and then withdraw the stimulus before it creates too much demand. It¹s a fine line.
Listen to Ken McCarthy, Managing Director, US Research Services, elaborate on this and its impact on real estate in the latest Economic Pulse report.
Investing in certain Asian markets where inflationary conditions are likely to persist remains a logical strategy. Large populations of relatively young workforces
and low levels of debt and plenty of savings puts many Asian countries in a good position for continued strong growth
Occupiers and investors face a number of problems in working out their strategy, not helped by the fact that inflationary conditions could be quite different within the five- to seven-year time horizon, with a period of low but volatile inflation in the short term possibly giving way to higher inflation in two to three years.
Whether serious inflation or deflation is avoided will come down to the ability of monetary and fiscal authorities to revive the economy and then withdraw the stimulus before it creates too much demand. For the commercial real estate industry, the driver of recovery will be employment growth, and, all factors considered, we anticipate a return to rising values in the 2010/2011 time frame.