The Atlas Outlook provides an overview of the global real estate investment market in 2015 and, more particularly, what’s in store for 2016. The report discusses the health and direction of the current market, the main areas of recent investment activity, macro drivers and, of course, risk. It then summarizes Cushman & Wakefield views on the global outlook, regional trends, and areas of opportunity where investment strategy can usefully be focused.

1. ATLAS OUTLOOK
2016
A Cushman & Wakefield Capital Markets Research Publication

2. In strategy terms, focusing on cities
rather than countries or sectors is
beneficial, but, above all, the mantra will
be ‘change not growth’ as investors
seek out security and performance.
Both stem from the value the property
not only creates but also sustains for its
occupier.
David Hutchings, EMEA Investment Strategy
Cushman & Wakefield

3. A TRANSFORMING INVESTMENT LANDSCAPE
WHICH REGIONS ARE SET TO SEE THE STRONG CAPITAL IN 2016?
North America
US$540 bn
3.8% growth
Asia Pacific
US$448 bn
1.5% growth
EMEA
US$347 bn
1.5% growth
Latin America
US$4.5 bn
18.6% growth
INVESTMENT VOLUMES (INCLUDING LAND AND MULTIFAMILY, ASSETS
OVER US$5 MN). SOURCE: CUSHMAN & WAKEFIELD, RCA

4. A TRANSFORMING INVESTMENT LANDSCAPE
THE KEY TRENDS SHAPING REGIONAL INVESTMENT PERFORMANCE
Stabilising growth in
China, higher supply
levels and robust
occupational demand
against strong regional
investor interest.
Asia Pacific
Reformed economies to
outperform as investors
wait for signs that the
commodity and real estate
markets have hit bottom.
Latin America
In the US, globally
leading economic
growth and dollar
strength are overlain
with tightening policy
and November’s
election.
North America
Further QE, low cost of
capital and uncertainties
in the EU stretching from
the UK’s referendum to
mass migration.
EMEA

5. Increased profit taking will bring more stock to market
LOOKING AHEAD
WHAT’S DRIVING THE 4.2% RISE IN TRADING VOLUMES FOR 2016
New sources of capital are still emerging
Unsatisfied demand among existing players in all
segments
A strong supply of debt

6. THE KEY
STRATEGIES
FOR THE
YEAR AHEAD
FOCUS ON THE OCCUPIER,
NOT THE BANKER
“BUILD TO CORE”
IN GATEWAY MARKETS
INVEST IN LOCAL
PLATFORMS,
DIRECTLY, IN JVS
AND VIA M&A
ACTIVITY
CITIES, NOT
COUNTRIES,
WILL BE KEY
FOCUS ON FLEXIBLE,
CORE PROPERTY,
WITH SUPER-PRIME IN
DEMAND

7. LOOKING AHEAD
THE REGIONAL MARKET FUNDAMENTALS FOR 2016
VALUE CHANGES IN THE GLOBAL MARKET
Source: Cushman & Wakefield, RCA
Note: Middle East rental growth and yields for offices only. Other regions are all-sector excluding multifamily. Rental levels referred
to are face rents.
RCA data relates to all deals over US$5 mn, as of Feb 2016. Constant exchange rate assumed in 2016 forecast.

8. Geopolitical issues, the length of the
recovery cycle, volatility and increased
uncertainty are leading to differing views
with respect to asset allocation and how
best to invest. This is benefiting real
estate as allocations to the sector
increase, boosting demand for assets.
Carlo Barel di Sant’Albano
CEO, Global Capital Markets, Cushman & Wakefield

9. CUSHMAN & WAKEFIELD LLP
43/45 Portman Square
London, W1A 3BG
Tel.+44 20 7935 5000
Cushman & Wakefield Copyright 2016. NO WARRANTY OR REPRESENTATION, EXPRESS OR
IMPLIED, IS MADE TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION
CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS,
CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE,
AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). AS
APPLICABLE, WE MAKE NO REPRESENTATION AS TO THE CONDITION OF THE PROPERTY
(OR PROPERTIES) IN QUESTION.
DAVID HUTCHINGS
Head of EMEA Investment Strategy
+44 (0) 20 7152 5029
+44 (0) 7793 808029
david.hutchings@cushwake.com