Research - MAY 17, 2022

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Global office investment facing some pressures

by Andrea Zander

The global office investment sector, like other types of real estate, is coming under some pressure from the macro-economic environment, but strong fundamentals should keep investment yields largely stable in many key markets, including Paris, London, Sydney, Mumbai and Dubai, said Savills, with yields actually forecast to harden in Frankfurt and Tokyo due to specific local conditions.

The international real estate advisor has assessed the likely interplay between the top-down (inflation, interest rate rises, geopolitical uncertainty) and bottom-up (limited availability of stock and weight of money causing competition between investors) factors that will determine the pricing of office assets over the next 12 months in major global cities. It says that the United States may be most exposed to macro top-down factors, with expectations of a significant tightening in financial conditions and limited pricing power for landlords potentially leading to yields rising in New York and

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