Institutional Real Estate Europe

June 1, 2024: Vol. 18, Number 6

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From the Current Issue


Centre of attention: European CBDs are displaying strong resilience

In a report released in May 2023 named The Future of the Central Business District, JLL claimed commercial centres across the globe were at “an inflection point”. Three years on from the start of the COVID-19 crisis, central business districts (CBDs) across the world were facing a “fundamental need to reinvent themselves” stated the advisory firm. A year later, JLL’s thesis, in a broad sense, remains true. But in Europe, the picture is now more nuanced


The time is now: The moment has arrived to put dry powder to use

After many years of growth in a low–interest rate environment, the recent commercial real estate downturn can arguably be described as something of a shock to the system for many. Triggered by rapidly rising interest rates and an unstable geopolitical environment, it has probably been one of the gloomiest outlooks for real estate since the global financial crisis (GFC) brought things to a halt in 2008. But has the danger now passed? And if so, is it now time to re-enter the European market?


A social premium: Focusing on the ‘S’ in ESG can revitalise buildings

Social asset management is becoming a key driver for revitalising office buildings and improving performance for residential and other property sectors, with the social aspect of environmental, social and governance (ESG) factors gaining increased attention in 2024. Typically, when ESG is discussed in the context of real estate asset management, the focus is given to the “E” of the environment. But the social side of the ESG equation also has huge potential for investment, with numerous opportunities to take value-driven approaches to enhance tenant experience. In the context of adding premiums on rent and increasing asset value, a “social premium” seems more practical and promising than a “green premium”


The return of the Celtic Tiger: Ireland’s residential market has momentum

Some may remember the term “Celtic Tiger” — referring to an era of rapid economic expansion in Ireland from the mid-1990s to the late 2000s. Fuelled by foreign direct investment, the country experienced exceptional growth during that period, transforming it from one of Western Europe’s poorer countries into one of its wealthiest. Now, a similar scenario is driving growth in the Irish economy. As a result, for institutional investors looking at residential real estate in Europe, Ireland presents an outstanding opportunity


IREI’s editorial advisory boards: Curating content for our readers

Every year in the European and Asia Pacific regions and twice annually in the Americas, we convene a meeting of our editorial advisory boards for our Institutional Real Estate publications. Board meetings also are held once a year for our Institutional Investing in Infrastructure and Real Assets Adviser publications. These boards comprise representatives from the firms that sponsor our publications and an equal number of investors and their consultants. The objective is always to provide a one-to-one ratio between capital providers and capital seekers, to make sure the input we receive is well balanced and reflects the interests of all our readers


Prime European office to have highest returns up to 2028

Further evidence of the bifurcation between primary and secondary offices has emerged, with prime European office markets being projected to deliver the highest return of any property sector between 2024 and 2028, according to research from AEW. In a surprising prediction, the manager says prime office locations are set to return 9.6 percent, on average, over the next five years


Fossil-fuel-free €1.2b London project gets green light

A U.S.-Korean development consortium between Hines and National Pension Service of Korea has received approval for a “fossil-fuel-free” development of a trio of towers in London. The project will total €1.2 billion and will be located on a two-acre brownfield site at the southern end of Blackfriars Bridge that has remained undeveloped for 20 years. Called 18 Blackfriars Road, the project has been designed to be 100 percent electric and net-zero carbon in operation, with 95 percent of the site’s heat demand served by ground source heat pumps that share, store and offset energy


ULI starts work on climate transition investment tool

The Urban Land Institute (ULI) Europe and Synergetic, an analytics company, have started developing a new interactive tool that they claim will enable the real estate industry to integrate climate transition into investment financial modelling. The tool, called Preserve, will be free to use and allow the ULI C Change Transition Risk Assessment Guidelines to be adopted at scale. This means Preserve will enable real estate companies to quantify the financial impacts of the opportunities and risks associated with a transition to net zero


Spain named Europe’s top hotel investment destination

Spain has been named as the most attractive destination in Europe for hotel investment, according to CBRE’s 2024 European Hotel Investor Intentions survey. The advisory firm says Spain attracted more than €4 billion of hotel investment in 2023, making up 36 percent of total commercial real estate investment in the country. The United Kingdom was the second most popular hotel investment destination, followed by Italy


Golden Triangle life sciences take-up increases 25%

The United Kingdom’s appeal as a European hub for life sciences has been underlined with new figures released by Knight Frank showing take-up in the “Golden Triangle” UK market was 186,000 square feet (17,300 square metres) in the first quarter of 2024 — an increase of 25 percent compared to the same period in 2023


The race for space: Have we reached the point of segmentation in European life sciences real estate?

Before 2021, European life sciences was a niche sector with a limited pool of operators. Now, the landscape has changed. Across the continent, and in the United Kingdom in particular, a “triple helix” has emerged between world-class academia and the commercialisation of research; high levels of venture capital investment; and transnational aspirations to grow countries’ standings in science and technology

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