Institutional Real Estate Europe

May 1, 2024: Vol. 18, Number 5

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From the Current Issue

Europe

Shifting landscapes: Alternatives are becoming mainstays for institutional investors

There is a reason investors and fund managers are increasingly shifting their capital and focus to alternative real estate assets; society is changing. Hybrid work is diminishing the need for offices, while an emphasis on clean energy is opening up all sorts of new real estate possibilities, and manufacturing, supply chains and the way consumers obtain goods are changing domestic real estate demand. This appetite for niche property segments is being matched by accessibility. Routes into alternatives are increasing, while the financial fundamentals of many non-mainstream real estate sectors enables them to deliver steady returns, while also having a positive social impact

Europe

Sharpening up: Making green leases more effective

Green leases — rental contracts containing extra clauses related to the environmental performance of a building — are on the rise in Europe. And for good reason. Regulation as well as tenant, landlord and investor net-zero targets are leading to an increased focus on both landlords and tenants holding themselves accountable when it comes to meeting decarbonisation targets. But having a tenant onboard and signed onto a green lease is not a silver bullet. So how can they be improved?

Europe

Revving up renovation: How can we catalyse the €275 billion needed to deliver Europe’s retrofit revolution?

When it comes to real estate, what is new is so often seen as better. But, when it comes to the future of our planet, that is not completely the case. The bias towards new buildings — even when they are highly sustainable — can mean opportunities for the repurposing and reuse of existing buildings are overlooked. But we will not be able to reach net zero without decarbonising existing buildings in addition to building new, sustainable ones

Europe

An inflection point?: Investors are poised for more action this year

The past year was a challenging investment environment, as higher interest rates and concerns about property valuations led many investors to pull back on activity until they could better understand the market dynamics. But real estate continues to have a key role to play in investors’ portfolios, offering diversification, current income and attractive risk-adjusted returns, as well as serving as an inflation hedge

Europe

Benchmarking your portfolios: Useful no-cost resources to help support you in your quest

During the past several years, as more and more of you have adopted these indices to help benchmark the performance of your portfolios, IREI Inc. has formed strategic alliances with IDR (which runs a series of funds tracking the NFI-ODCE index), Nareit and EPRA to produce webinars to update our constituents on their respective quarterly performance numbers as well as the forces underlying and shaping those performance numbers

Europe

Global investment volumes bottomed out in 2023

In 2023, global real estate investment volumes were among the lowest since the global financial crisis, according to Colliers’ March 2024 Global Capital Flows report. Overall, volumes were at 75 percent of the 10-year average, with varying results across regions

Europe

Office demand to drop 12% by 2030 in Germany’s top cities

Demand for office space in Germany’s top seven cities will drop by 12 percent by 2030, according to a new study from Colliers and the ifo Institute. After surveying some 9,000 companies in Germany and using office letting data from between 2013 and 2023, the advisory firm and economic think tank have suggested that the reduction in office demand could amount to 11.5 million square metres (124 million square feet) of spare space

Europe

AI could reduce real estate’s carbon footprint by 50%

The widespread use of artificial intelligence (AI) could reduce global real estate’s greenhouse gas emissions by between 5.81 gigatonnes to 6.46 gigatonnes on an annual basis — the equivalent of the entire 2022 global carbon footprint of the United States

Europe

The squeezed middle: The role of institutional capital in creating affordable housing

Europe’s cities are in the midst of a housing crisis. With growing levels of unmet housing demand, there is a pressing need for a multidecade policy response to expand new supply. A new paper from INREV — The Housing Middle Income Europe Report — outlines how supply gaps have been identified across the full spectrum of housing tenure segments in Europe. These include the private rented sector (PRS), public and third sector not-for-profit (NFP) subsidised housing, and owner-occupied properties.

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