Office yields across Europe: Been here before
Research from Savills shows that the destabilisation in the European economy has resulted in a CBD office yield gap of up to 550 basis points, when looking at the strongest and weakest markets. The yield shifts suggest that Europe may be returning to pre-euro market characteristics, says the firm’s latest Market in Minutes research publication.
Markets that converged following the introduction of the euro have now diverged, with a significant pricing differential emerging between core and peripheral markets. Annual outward yield shifts of 50 basis points have recently been recorded for Athens, Lisbon and Madrid CBD office markets, to give triple net yields of 8.60 percent, 7.00 percent and 5.90 percent, respectively, between Q1 2012 and Q1 2013. Over the same period, tripl