Commercial property investment in central London has seen its strongest trading in a decade, according to Savills. The real estate adviser claims that over £2.3bn was invested in central London commercial property in July, with total turnover for 2017 to the end of July reaching £11.5bn, a 24 percent increase on the same period last year. July was the strongest month recorded since March 2007 for the City as sales were boosted by the acquisition of 20 Fenchurch Street for almost £1.3bn to a Hong Kong-based property group.

(more…)

Investment in European commercial property fell during the first half of the year, despite the strong performance of key markets such as Germany, claims a new report from Knight Frank. Overall, commercial property investment stood at €43.3 billion for the second quarter of 2017 bringing transaction volumes for the first half of the year amounted to €90.3 billion, an 8 percent decrease year on year. According to the report, Germany has become the leading European investment destination for North American investors and the dominant location for intra-European cross border investment.

(more…)

Serviced office take up across the UK has increased by 176 percent in the first half of 2017, reaching 1.07 million sq ft compared to the same period in 2016, which saw 386,750 sq ft acquired, according to real estate adviser Savills. The firm claims that while Central London saw a significant increase with take-up reaching 860,368 sq ft in the first six months, property markets outside the capital also saw substantial growth. Savills research shows that the M25 office market saw take-up by serviced office operators rise from 44,676 sq ft in the same period last year to 109,886 sq ft in the first half of 2017, while in the regional markets, serviced offices, including coworking spaces, accounted for 4 percent of overall office take-up in the first half of the year at 95,987 sq ft, compared to 41,568 sq ft during the same period in 2016.

(more…)

Amid varying economic performances and property fundamentals, North American and European office leasing markets are generally performing well as they undergo an important shift in dynamics influenced by trends transforming both occupier demand and the supply of new product. Traditional drivers of demand are being joined by emerging disruptors that will increasingly shape the future of the office-space market and commercial real estate as a whole. These are some of the key trends noted in Avison Young’s Mid-Year 2017 North America and Europe Office Market Report. According to the report, of the 64 office markets tracked in North America and Europe, which comprise almost 6 billion square feet, market-wide vacancy rates decreased in 40 of the markets as nearly 52 million square feet was absorbed. Occupiers’ desire for new products remains strong and developers have responded, according to the report, with more than 62 million sq. ft. of office space was completed during the 12-month period ending June 30, 2017.

(more…)

Although the commercial property market in the UK is proving largely resilient, demand to rent levelled off for the first time in almost five years during the past three months, according to a study from The Royal Institution of Chartered Surveyors (RICS) Its gauge of commercial tenants’ demand for property fell to -2 for the second quarter of 2017, its lowest reading since the third quarter of 2012. Demand varies across market sectors, however, with occupier demand declining in the office and retail sectors of the UK commercial property market, but conditions in the industrial segment remain firm, according to the survey.

(more…)