Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

A Look at Brexit - Mellott

101 views

Published on

EDR PRISM Event

Published in: Business
  • Be the first to comment

  • Be the first to like this

A Look at Brexit - Mellott

  1. 1. CRE IN A COMPLEX WORLD MAY 2, 2017
  2. 2. • State of the Market • What’s influencing markets? • Some perspective: What really matters? • What’s next? CRE Outlook CBRE CRE IN A COMPLEX WORLD2 CRE IN A COMPLEX WORLD WHAT’S THE PLAN?
  3. 3. LONDON STATE OF THE MARKET
  4. 4. • 2.5 million sq. ft. of take-up in Central London • Prime rents unchanged in the city, but down 2% in West End • 14.7 million sq. ft. of availability • 6.6 million sq. ft. of completed construction expected • Less than 3 million sq. ft. (new) expected in 2018 CBRE CRE IN A COMPLEX WORLD4 CRE IN A COMPLEX WORLD STATE OF THE MARKET - LONDON Source: CBRE Research
  5. 5. • Demand began to taper off in 2016 (Q1 2017 19% below 10 year average) • Availability at 10-year average (14.7 million sq. ft.) • Office rents outside of London doing better CBRE CRE IN A COMPLEX WORLD5 CRE IN A COMPLEX WORLD STATE OF THE MARKET - LONDON Source: CBRE Research
  6. 6. • The value of real estate transactions in 2016 was down 25% YoY (most since GFC) • Central London investment down only 19% • Not all attributed to referendum • Volumes are down across the board CBRE CRE IN A COMPLEX WORLD6 CRE IN A COMPLEX WORLD STATE OF THE MARKET - LONDON Source: CBRE Research
  7. 7. Figure 2: Capital flows into global real estate (US$ billions) Source: CBRE Research, Real Capital Analytics, 2016. 368 586 85 189 191 64 113 78 44 156 171 70 73 284 180 172 329 83 233 396 108 303 458 113 316 566 105 107 501 288 EMEAUS$bn Americas APAC 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1,200 1,000 800 600 400 200 0 CAPITAL FLOWS INTO GLOBAL REAL ESTATE (US$ BILLIONS) CBRE CRE IN A COMPLEX WORLD7 Source: CBRE Research, Real Capital Analytics 2016.
  8. 8. EUROPE STATE OF THE MARKET
  9. 9. Figure 3: 2016 prime capital value growth (annual change) Source: CBRE Research, NCREIF, 2016. 4.0% 5.4% 8.6% 8.7% 10.3% 6.6% 4.9% 2.7% 5.1% Office Retail Industrial AMERICAS EMEA ASIA PACIFIC 2016 PRIME CAPITAL VALUE GROWTH (ANNUAL CHANGE) CBRE CRE IN A COMPLEX WORLD9 Source: CBRE Research, NCREIF, 2016.
  10. 10. Figure 4: 2016 prime property rent growth (annual change) Source: CBRE Research, 2016. 0.2% 2.3% 1.9% -1.9% 6.6% 4.7% 1.8% 0.0% 0.9% Office Retail Industrial AMERICAS EMEA ASIA PACIFIC 2016 PRIME PROPERTY RENT GROWTH (ANNUAL CHANGE) CBRE CRE IN A COMPLEX WORLD10 Source: CBRE Research, 2016.
  11. 11. 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 OFFICE MARKET* VACANCY RATES (%) CBRE CRE IN A COMPLEX WORLD11 *All major markets where vacancy data are available except Moscow Source: CBRE Research
  12. 12. WHAT’S INFLUENCING MARKETS?
  13. 13. In the UK In the rest of Europe Very Significant Significant Neutral Insignificant Very Insignificant 40% 35% 30% 25% 20% 15% 10% 5% 0% BREXIT BIG DEAL OR RED HERRING? CBRE CRE IN A COMPLEX WORLD13 Source: CBRE European Occupier Survey 2017.
  14. 14. Access to sufficiently large/skilled labor pool Exchange rate fluctuations General policy uncertainty Ability to operate in European markets Possible changes to trading arrangements / tariff introductions Other 32% 28% 27% 8% 2% 3% BREXIT WHAT’S THE CONCERN? CBRE CRE IN A COMPLEX WORLD14 Source: CBRE European Occupier Survey 2017.
  15. 15. MARCH 29: Article 50 issued APRIL 29: EU Summit signs off negotiating guidelines to Commission MAY 7: French elections JUNE Substantive ‘divorce’ negotiations on money, EU citizens and N Ireland JULY, AUGUST (Go on holiday) SEPTEMBER German elections ARTICLE 50 WHAT HAPPENS NEXT? CBRE CRE IN A COMPLEX WORLD15
  16. 16. GREATEST CHALLENGES FOR ORGANIZATIONS FUTURE OPERATIONS EMEA OCCUPIER SURVEY KEY FINDINGS CBRE CRE IN A COMPLEX WORLD16 Source: CBRE Research, 2017; EMEA Occupier Survey Report 2017.
  17. 17. - 100 200 300 400 500 600 700 800 900 UK Germany France Sweden Netherlands Spain Italy Norway Finland Denmark Belgium Poland Russia Austria Ireland EUROPEAN CRE INVESTMENT 2003-2016 CBRE CRE IN A COMPLEX WORLD17 Source: CBRE Research 2016.
  18. 18. 0% 10% 20% 30% 40% 50% 60% 70% 80% Czech Republic Russia Norway Sweden Poland Ireland Italy Netherlands Spain France Germany UK London 0% 10% 20% 30% 40% 50% 60% 70% 80% Czech Republic Switzerland Portugal Russia Denmark Netherlands Italy Belgium Spain France Germany UK Total investment from North America, % of total KEY DESTINATIONS IN EUROPE TOP COUNTRIES 2013-2016 CBRE CRE IN A COMPLEX WORLD18 Source: CBRE Research 2016. London Total investment from Asia, % of total
  19. 19. WHAT REALLY MATTERS? SOME PERSPECTIVE
  20. 20. • London most connected city* • Hosts 40% of European HQ for world’s top companies** CBRE CRE IN A COMPLEX WORLD20 CRE IN A COMPLEX WORLD SOME PERSPECTIVE *Source: Global and World Cities Network **Source: Deloitte
  21. 21. • 65,000 people EU-facing financial services • 3% of UK office stock (6 million sq. ft.) • About the level of space leased in Central London every 6 months CBRE CRE IN A COMPLEX WORLD21 CRE IN A COMPLEX WORLD SOME PERSPECTIVE Source: CBRE Research
  22. 22. • Top 10 global investment banks 52,000 in London • Could see 27% of those jobs moved • Equal to 5 weeks of leasing in London CBRE CRE IN A COMPLEX WORLD22 CRE IN A COMPLEX WORLD SOME PERSPECTIVE Source: CBRE Research
  23. 23. • In 2006 financial services accounted for 41% of Central London leasing (sq. ft.) • In 2016 only 23% • London has diversified • Tech and media (immigration key) CBRE CRE IN A COMPLEX WORLD23 CRE IN A COMPLEX WORLD SOME PERSPECTIVE Source: CBRE Research
  24. 24. • London boasts a lot of advantages • Housing, schools, infrastructure and culture • Legal and regulatory environment • Alternatives aren’t clear • Impacts will be over the long term CBRE CRE IN A COMPLEX WORLD24 CRE IN A COMPLEX WORLD SOME PERSPECTIVE
  25. 25. CBRE CRE IN A COMPLEX WORLD25 CRE IN A COMPLEX WORLD SOME PERSPECTIVE TRANSPARENCY FX ADVANTAGE SIZELIQUIDITY
  26. 26. -6% -4% -2% 0% 2% 4% 6% Y-o-Y % Change Recession Nonfarm Emp. 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 2016 REAGAN SHOT FALKLANDS WAR US EMBASSY IN BEIRUT BOMBED CHERNOBYL DISASTER GLASTNOST IN USSR BERLIN WALL FALLS US INVADES KUWAIT GULF WAR STARTS FALL OF THE SOVIET UNION EUROPEAN UNION BEGINS BOSNIAN WAR ENDS EUROZONE CREATED 9/11 US INVASION OF IRAQ RUSSO-GEORGIAN WAR OBAMA ELECTED SYRIAN WAR JAPANESE TSUNAMI ISIS EMERGES CRIMEA ANNEXED PARIS ATTACKS BREXIT VOTE NAFTA SIGNED HURRICANE KATRINA BUSH I ELECTED CLINTON ELECTED BUSH II ELECTED TRUMP ELECTED PERSONAL COMPUTER INTRODUCED CRE IN A COMPLEX WORLD GEOPOLITICS MATTER BUT NOT LIKE YOU THINK CBRE CRE IN A COMPLEX WORLD26 Source: CBRE Research; U.S. BLS, Q4 2016.
  27. 27. UNEMPLOYMENT THE CYCLE MATTERS CBRE CRE IN A COMPLEX WORLD27 Source: CBRE Research, Macrobond, IMF, WEO. G7 UNEMPLOYMENT RATE (%) 5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
  28. 28. OUTLOOK EMPLOYMENT AND INTEREST RATES CBRE CRE IN A COMPLEX WORLD28 Source: CBRE Research, Macrobond.
  29. 29. CRE OUTLOOK WHAT’S NEXT?
  30. 30. Figure 7: Purchasing activity relative to 2016, global and regional Source: CBRE 2017 Global Investor Intentions Survey. Global EMEA Americas Asia Pacific More than 20% lower Between 10% - 20% lower Between 10% - 20% higher More than 20% higher Up to 10% lower About the same Up to 10% higher % 50 45 40 35 30 25 20 15 10 5 0 PURCHASING ACTIVITY RELATIVE TO 2016 GLOBAL AND REGIONAL CBRE CRE IN A COMPLEX WORLD30 Source: CBRE 2017 Global Investor Intentions Survey.
  31. 31. on ORTH C #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW EMEA ASIA PACIFIC TOP TARGET CITIES BY REGION CBRE CRE IN A COMPLEX WORLD31 Source: CBRE 2017 Global Investor Intentions Survey. Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC Source: CBRE 2017 Global Investor Intentions Survey. #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE ASIA PACIFIC Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC Source: CBRE 2017 Global Investor Intentions Survey. Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC n RTH #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS EMEA ASIA PACIFIC Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC Source: CBRE 2017 Global Investor Intentions Survey. Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC Source: CBRE 2017 Global Investor Intentions Survey. Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC Source: CBRE 2017 Global Investor Intentions Survey. Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC Source: CBRE 2017 Global Investor Intentions Survey. Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC Source: CBRE 2017 Global Investor Intentions Survey. Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC Source: CBRE 2017 Global Investor Intentions Survey. Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDNEY #2 TOKYO #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PACIFIC Source: CBRE 2017 Global Investor Intentions Survey. Figure 12: Top target cities by region #1 LOS ANGELES #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #1 SYDN #2 TOK #3 SHAN #4 MELB #5 BRISB #6 HON #1 LONDON #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW AMERICAS EMEA ASIA PAC Source: CBRE 2017 Global Investor Intentions Survey. #2 DALLAS/FORT WORTH #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #2 TOKYO #3 SHANG #4 MELBO #5 BRISBA #6 HONG #2 BERLIN #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW Source: CBRE 2017 Global Investor Intentions Survey. #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #3 MADR #4 AMST #5 PARIS #6 WARS Source: CBRE 2017 Global Investor Intentions Survey. #3 NEW YORK #4 WASHINGTON DC #5 ATLANTA #6 SAN FRANCISCO #7 SEATTLE #3 SHANGHAI #4 MELBOURNE #5 BRISBANE #6 HONG KONG #3 MADRID #4 AMSTERDAM #5 PARIS #6 WARSAW Source: CBRE 2017 Global Investor Intentions Survey. AMERICAS EMEA ASIA PACIFIC
  32. 32. Source: CBRE 2017 Global Investor Intentions Survey. 79% DIRECT 26% DEVELOPMENT FUNDING 8% CORPORATE AQUISITIONS 7% OTHER EQUITY 7% OTHER DEBTS 49% PARTNERSHIP / JOINT VENTURE / PARTIAL INTERESTS 22% LISTED REAL ESTATE (INCLUDING LISTED REITS) PREFERED INVESTOR VEHICLES 2016 VERSUS 2017 CBRE CRE IN A COMPLEX WORLD32 Source: CBRE 2017 Global Investor Intentions Survey. Figure 15: Preferred investor vehicles Source: CBRE 2017 Global Investor Intentions Survey. 79% DIRECT 26% PROPERTY FUND 26% DEVELOPMENT FUNDING 16% PRIVATE DEBT 8% CORPORATE AQUISITIONS 7% OTHER EQUITY 7% OTHER DEBTS 5% CMBS 49% PARTNERSHIP / JOINT VENTURE / PARTIAL INTERESTS 22% LISTED REAL ESTATE (INCLUDING LISTED REITS) Figure 15: Preferred investor vehicles 79% DIRECT 26% PROPERTY FUND 26% DEVELOPMENT FUNDING 16% PRIVATE DEBT 8% CORPORATE AQUISITIONS 7% OTHER EQUITY 7% OTHER DEBTS 5% CMBS 49% PARTNERSHIP / JOINT VENTURE / PARTIAL INTERESTS 22% LISTED REAL ESTATE (INCLUDING LISTED REITS) 26% PROPERTY FUND 16% PRIVATE DEBT 7% OTHER DEBTS 5% CMBS Figure 15: Preferred investor vehicles Source: CBRE 2017 Global Investor Intentions Survey. 79% DIRECT 26% PROPERTY FUND 26% DEVELOPMENT FUNDING 16% PRIVATE DEBT 8% CORPORATE AQUISITIONS 7% OTHER EQUITY 7% OTHER DEBTS 5% CMBS 49% PARTNERSHIP / JOINT VENTURE / PARTIAL INTERESTS 22% LISTED REAL ESTATE (INCLUDING LISTED REITS) Figure 15: Preferred investor vehicles Source: CBRE 2017 Global Investor Intentions Survey. 79% DIRECT 26% PROPERTY FUND 26% DEVELOPMENT FUNDING 16% PRIVATE DEBT 8% CORPORATE AQUISITIONS 7% OTHER EQUITY 7% OTHER DEBTS 5% CMBS 49% PARTNERSHIP / JOINT VENTURE / PARTIAL INTERESTS 22% LISTED REAL ESTATE (INCLUDING LISTED REITS) Figure 15: Preferred investor vehicles Source: CBRE 2017 Global Investor Intentions Survey. 79% DIRECT 26% PROPERTY FUND 26% DEVELOPMENT FUNDING 16% PRIVATE DEBT 8% CORPORATE AQUISITIONS 7% OTHER EQUITY 7% OTHER DEBTS 5% CMBS 49% PARTNERSHIP / JOINT VENTURE / PARTIAL INTERESTS 22% LISTED REAL ESTATE (INCLUDING LISTED REITS) Source: CBRE 2017 Global Investor Intentions Survey. 79% DIRECT 26% DEVELOPMENT FUNDING 8% CORPORATE AQUISITIONS 7% OTHER EQUITY 7% OTHER DEBTS 49% PARTNERSHIP / JOINT VENTURE / PARTIAL INTERESTS 22% LISTED REAL ESTATE (INCLUDING LISTED REITS)
  33. 33. Source: CBRE 2017 Global Investor Intentions Survey. Figure 16: Investors main motivation for investing in real estate 2017 Yield relative to other asset classes Higher income return than other assets classes Expectation of better capital value growth than asset classes Other Hedge against inflation Asset class diversification Steady income stream from rents % 0 5 10 15 20 25 30 35 30 20 15 Geographic diversification 7 2 0 0 20 Yield relative to cost of debt (positive leverage advantage) 6 INVESTOR MOTIVATION WHY INVEST IN REAL ESTATE? CBRE CRE IN A COMPLEX WORLD33 Source: CBRE 2017 Global Investor Intentions Survey.
  34. 34. Source: CBRE 2017 Global Investor Intentions Survey. Figure 17: Investor main obstacles to purchase 2017 Asset pricing Availability of assets Competition from other investors Low market transparency Other Currency risk Tax Deflation % 0 6010 3020 40 50 48 25 16 3 2 2 1 1 1 0 Availability and/ or cost of debt Lack of investment partners INVESTOR CHALLENGES MAIN OBSTACLES TO PURCHASE CBRE CRE IN A COMPLEX WORLD34 Source: CBRE 2017 Global Investor Intentions Survey.
  35. 35. Figure 18: Investor main concerns 2017 A global economic shock undermining occupier demand Faster than expected, a bubble waiting to burst Overbuilding leading to excess supply Property is overpriced, a bubble waiting to burst A local economic shock undermiming occupier demand Local politcal instability Some other property market related shock Higher than expected owners Other Distressed sales by existing owners Deflation % 0 5 10 15 20 25 Global political instability (conflict and or terrorism) A change of government policy that makes property less attractive 22 6 2 1 1 1 6 4 21 10 10 15 0 Source: CBRE 2017 Global Investor Intentions Survey. INVESTOR CHALLENGES MAIN CONCERNS CBRE CRE IN A COMPLEX WORLD35 Source: CBRE 2017 Global Investor Intentions Survey.
  36. 36. CONCLUSION
  37. 37. • Europe currently well-positioned cyclically • Late cycle • Some room to run • Politics increasingly important, but not how you think • Watch interest rates and FX CBRE CRE IN A COMPLEX WORLD37 CONCLUSION
  38. 38. THE WORLD AT AN INFLECTION POINT CBRE CRE IN A COMPLEX WORLD38
  39. 39. THANK YOU DARIN MELLOTT Director, Research and Analysis CBRE

×