DNA of Real Estate: Q3 2018

Nigel Almond

Head of Data Analytics

Phone +44 203 296 2328

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The DNA of Real Estate Q3 2018

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.

Highlights:

  • 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

Offices

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

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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