CBRE: We currently monitor more than 40 ongoing transactions in various stages
CBRE, the world leader in the commercial real estate services, released a study of Real Estate Investment Market for Q2 and prediction by the end of the year. Looking at H1 2016 as a whole, CBRE recorded the third strongest H1 since our records begun. In total, the H1 investment volume reached EUR 957 mln and stood almost 39% above the 10Y H1 average. CBRE currently monitor more than 40 ongoing transactions in various stages, however, some of these might not close until 2017.
We expect the positive market sentiment to continue throughout the H2 and full year investment volumes are on track to reach the EUR 3 bln mark, which would be a record high for the country. The retail sector is expected to continue its popularity with investors, but following a period of limited supply, we expect the office market to improve significantly with major transactions such as The Park, Florentinum and Enterprise all expected to close during 2016. Based on these landmark transactions, we expect new benchmark yields to be set in the office sector.
Whilst Czech capital was the most prevalent source of investment in H1 2016, accounting for 35% of volumes, based on the number of large transactions underway we expect that international investors will eventually account for the greatest share of investments, with European institutional groups being particularly active.
CBRE expects that yield compression will slow during the second half of 2016, with yield levels eventually plateauing towards the end of the year. However, we still do not expect the gap between prime and secondary to close dramatically.
CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2016 revenue). The Company has approximately 75,000 employees and serves real estate investors and occupiers through approximately 450 offices worldwide (excluding affiliates). CBRE offers a broad range of integrated services including project management; property management; investment management; valuation; property leasing; strategic consulting and research and consulting. In the Czech Republic, CBRE has almost 350 employees and manages nearly 70 commercial premises with a total area nearly 1.2 mil. sq. m. Read more at www.cbre.cz.