Summer 2013: The times they are a-changin
It increasingly appears that tail risks have diminished in Europe, and we believe the foundations are being laid for a return to growth, albeit modest. What opportunities does this present for European commercial real estate?
While 2012 was a challenging year for Europe, in recent months a number of encouraging news stories suggest the light at the end of the tunnel may be getting closer:
• Uncertainty regarding the future of the euro zone has diminished substantially. Peripheral European bond yields (the proxy indicator for fear of a euro collapse) remained stable despite a flare-up of the European sovereign debt crisis — the Cypriot bailout and the inconclusive Italian election result. European authorities can take credit for the reduction in tail risks, thanks to institutional progress on creating the foundations of a banking union and, in particular, the Outright Monetary Transactions program (unlimited b