The corporate real estate sales market in Europe has undergone a significant shift since the early years when it was dominated by city centre office disposals.

The corporate real estate sales market in Europe has undergone a significant shift since the early years when it was dominated by city centre office disposals.

In 2009, the retail sector dominated this market for the first time, comprising 44% of total European corporate disposals, according to new research by CB Richard Ellis (CBRE).

CBRE found that real estate sales by major players in Europe's banking sector were a dominant feature of the market in 2009. In Spain, a recent example was the disposal of a nationwide portfolio of high street bank branches to RREEF/AREA for EUR 1.15 bn in Q3 2009, which was the most prominent example of banks disposing of their corporate real estate in Europe.

Spain and Italy together accounted for 35% of the European market, with around EUR 2.2 bn worth of corporate sales each. Three of the five EUR 500 mln-plus corporate real estate sales recorded in Europe in 2009 took place in Spain and Italy. The UK's contribution to corporate disposals accounted for 26% of the European total, notably including HSBC's sale of 8 Canada Square, Canary Wharf, London, for EUR 860 mln in Q4 2009.

Richard Holberton, director of EMEA Research, CBRE, said: 'There are two key reasons for the recent boost in retail transactions. Firstly, supermarket chains, especially in France, Finland and the UK, have been quick to recognise the opportunity to leverage their covenant strength and lock in low rents by exercising sale-and-leasebacks on their real estate. Secondly, in response to profitability issues, financial institutions have also disposed of many high street bank branches, boosting the retail share of corporate sales significantly.'