Markets continue to suffer from geopolitical uncertainty. Bond yields and swap rates increased notably over the quarter as inflationary pressures build. Some measures, including service sector PMI improved in September. How has this impacted real estate investment and occupational market data? Read the report to see how key markets have been impacted.
Office
Prime office rents rose 1.5% q/q and 5.0% y/y in line with growth in recent quarters reflecting relative strong demand and limited supply of best-in-class office space. Rent growth was observed in over 40% of markets q/q. Prime yields edged out 5bp to 5.44%, with close to a fifth of markets reporting an outward shift.
Retail
Prime high street retail rents were flat for most markets in Q3, although some modest growth was reported with rents up rose 0.8% q/q and 3.4% y/y at the European level. Unlike other sectors yields were broadly stable with just three markets reporting an outward shift pushing the all Europe yield out 1bp to 4.78%.
Logistics
Logistics rents rose by a further 0.5% q/q and 2.4% y/y, albeit marginally lower than what has been observed in previous quarters. Prime yields have been more sensitive, with 50% of markets reporting an outward shift pushing the all-Europe yield out 7bps to 5.30%.
