PropertyEU's latest issue examines the office asset class as it undergoes fundamental change in an era of hybrid working and ever stricter ESG requirements.
Expo Real is always a welcome opportunity to put an ‘out of office’ reply on one’s email inbox. Digital communication gives way to face-to-face meetings, a chance to talk ‘shop’, but also time to take the temperature of the industry.
The PropertyEU team will be on the ground at the event to do just that; and my sense is that beyond the pristine appointments’ diary, it is often the snatched words between stands which are the most revealing.
It’s already possible to take the measure of 2024; a year both good and bad in equal parts for the industry. While the Fed’s higher- than expected rate cut of 0.5% on 18 September is a welcome fillip for the transaction environment, in the wake of ECB and Bank of England cuts, they have all come too late to save 2024’s deal volumes.
As expected, too, the record year of elections has created a few hiccups and bumps; November reserves perhaps the most important of them all, a resolution of the neck-and-neck race between Kamala Harris and Donald Trump. While the macroeconomic climate and financial uncertainty can make it feel like the industry has lost its right to self-determination, that’s not entirely true. Many of you are busy transacting, even if capital markets aren’t up to full strength. Opportunities abound, you tell us, even in the most unlikely of places.
This month’s issue takes the future of the office as a major theme. It’s a timely question: are you in, or out of offices? For many investors, who once allocated the majority of their capital to this asset class, the answer isn’t always straight forward. While secondary offices in tired locations may be a big no-no, exceptional properties have never been in greater demand.
We hear from AXA IM Alts’ Emilie Jaskula about the ‘shortage of prime offices in the very best locations’ as her firm tackles the refurbishment and even conversion of older stock. We also look at the occupier view and explore the positive effect The Elizabeth Line in London is having on a slate of new offices.
The ambiguity around the office asset class is typical of the industry, partly due to bifurcation in the sector, and partly because real estate has a complex dimension defined by larger trends. We know that topics from e-commerce to renewables, climate change to demographics are high on your radar. PropertyEU remains on hand to share valuable insights, as we join with you in Munich, aiming to contribute to the wisdom of the pack.
