More pain for office investors, values expected to hit a 25pc peak-to-trough fall

RESEARCH

AFTER an extended stand-off between vendors and buyers on the prices of office buildings, shopping centres and warehouses that saw hefty devaluations, the prospect of further global interest rate...

Cushman & Wakefield’s Australian CRE Glidepath report indicates overall commercial real estate investment volumes are already showing signs of positive momentum...

The firm’s commercial property price index (CPPI) is forecast to decline 8% peak-to-trough once valuations bottom out in early 2025. Offices are forecast to see the largest repricing...

Investor sentiment towards commercial property is beginning to lift. The proportion of commercial real estate professionals who view the market as being in a downturn has...

Aggregate volumes are expected to continue rebounding through 2025 to reach $47 billion for the year as clarity on the path of interest rates close the bid-ask spreads between...

As we pass through the cyclical bottom and the direction of rates becomes clearer, the subsequent recovery in volume is allowing for prices to adjust across the commercial property market...

We’re seeing cap rates at or approaching their peaks and expecting spreads to settle in a far narrower range by the first half of 2025. The value of retail assets has already found its...

Retail to leader

The research indicates that the retail market is poised to lead the recovery in values. The CPPI is forecasting a 16% upward repricing from Q4 2024 and 2030. Investment volumes in...

The logistics and industrial sector saw cap rate expansion have a minimal impact amid stronger rents and lower vacancies. The sector is forecast to see a price increase of...

The effect of cap rate expansion on values has been most acutely felt in office markets, as the sector faces structural headwinds in the form of the working-from-home trend...

Office investment volumes also rose more than $2 billion quarter-on-quarter in Q2 to $3.5 billion and is predicted to rise to $4 billion by the end of 2025...

Alternative assets are predicted to form a larger share of overall CRE investment volumes, rising from $9.3 billion in 2024 to $11.5 billion in 2025. Alternative assets are forecast to...

Cushman & Wakefield’s head of international research, Dr. Dominic Brown said there is close to $70 billion in capital across Asia Pacific sitting on the sidelines “looking for the right time to...

Almost two-thirds of that forms part of opportunistic, value-added or debt strategies and is searching for higher yields, and Australia remains a preferred destination for capital across the region...

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