Our team of international valuation experts provide industry-leading insight on European markets. CBRE’s European Yield Sheets examine yield movements across more than 30 countries, providing indication on the performance of property in each market.

The interactive yield sheets have been revamped on a new data visualisation suite, which allows us to provide more detailed graphical illustrations of yield data and a fresh approach to analysis.

Further softening in shopping centre yields; demand for offices, logistics and alternative sectors continues

"The negative sentiment towards shopping centres – and secondary retail in particular - continues into 2020. This effect [on shopping centres] has been felt in both prime and secondary markets where there has been softening across a number of countries. There is increased polarisation, with interest in the best centres still being high, though the definition of what constitutes prime has narrowed. The market for high street shops is varied, with the key markets still performing well with competitive yields. The smaller lot size of retail parks is attracting some investor interest, particularly in Germany where the yield is now sharper than prime shopping centres.

Given the attractive spread to the risk-free rate, solid occupier demand and realisable rental growth, prime office yields continue to compress across continental Europe with potential for further sharpening in the coming quarters. Secondary yields also compressed due to a lack of supply of prime properties, shifting interest to the periphery and other cities.

The structural changes brought through the rise of e-commerce is one of the factors behind the strengthening of prime logistics yields. This comes on the back of low vacancy levels, high retention rates and the limited supply pipeline which is driving rental growth in supply-constrained locations.The alternatives sectors continue to attract investors drawn by the strong occupier fundamentals and cash-on-cash returns.

We continue to monitor the markets closely in relation to the impact of the Novel Coronavirus (COVID-19) on investment volumes and pricing.”

Andrew Barber, Executive Director, International Valuation & Advisory Services at CBRE

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