Investors stuck to the forward transactions route to acquire European office properties in the second quarter of 2020, indicating that investor demand for the asset type is still alive despite concerns over future needs for corporate space, Real Capital Analytics latest data show.
Forward commitments leapt to a record proportion of European office deal volume, with the jump in share reflecting the resilience of these deals and the slump in the office market overall. The purchases of properties still under development came to just over €3.3 billion ($3.9 billion) in the second quarter, up from €3 billion ($3.55 billion) a year ago and representing 22 percent of total office asset sales. Transactions of standing stock, meanwhile, declined 55 percent year-over-year.
Tom Leahy, senior director, EMEA Analytics at RCA, said, “Forward transactions have traditionally held appeal for institutional investors as a means to acquire good-quality offices, especially in market
