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ATLAS OUTLOOK
2016
A Cushman & Wakefield Capital Markets Research Publication
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 StrategyCushman & Wakefield
A TRANSFORMING INVESTMENT LANDSCAPEWHICH REGIONS ARE SET TO SEE THE STRONG CAPITAL IN 2016?
North America
US$540 bn3.8% growth
Asia Pacific
US$448 bn1.5% growth
EMEA
US$347 bn1.5% growth
Latin America
US$4.5 bn18.6% growth
INVESTMENT VOLUMES (INCLUDING LAND AND MULTIFAMILY, ASSETS OVER US$5 MN). SOURCE: CUSHMAN & WAKEFIELD, RCA
A TRANSFORMING INVESTMENT LANDSCAPETHE 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
Increased profit taking will bring more stock to market
LOOKING AHEADWHAT’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
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
LOOKING AHEADTHE 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.
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’AlbanoCEO, Global Capital Markets, Cushman & Wakefield
CUSHMAN & WAKEFIELD LLP43/45 Portman SquareLondon, W1A 3BGTel.+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 HUTCHINGSHead of EMEA Investment Strategy+44 (0) 20 7152 5029+44 (0) 7793 [email protected]
