Industrial and office expected to outperform retail by 20% in Europe

Operating fundamentals in Europe’s industrial and office sectors are expected to outperform retail by some 20 percent over the next five years, according to Green Street Advisors.

The research and advisory firm has said that its Pan-European Commercial Property Price Index currently shows that asset values for office and industrial sectors are at all-time highs (up by about 10 percent) and yields are at all-time lows. This is in stark contrast to retail, which is undergoing a paradigm shift due to e-commerce pressures. As a result, Green Street believes Europe will see a further bifurcation of its property sectors over the first half of this decade.

In a note, the company says that although pan-European retail spending growth remains in positive territory, the continent is undergoing a “robust” e-commerce growth phase, which should continue to see the greatest demand gains in urban locations with lower-than average e-commerce penetration rates, such as M