Welcome to this weeks Property News.
What a massive year we’ve had in real estate.
We’ve recorded well over $50Bn of transactions across the key real industrial office, retail and development sectors over the past 12 months, well above last year and even 9% higher than 2019. These results exclude the M&A transactions and the secondary trades that have occurred off market.
Traditionally, the Office market comprises 50% of major institutional deals, however this year it has shrunk to be less than 25% of the market with the Industrial market taking up the space and accounting for 33% of all deals (up from around 12%.
The weight of capital has driven cap rates lower however they remain within the average spread to 10 year bond rates as shown in the chart below. As bond rates move higher in the year ahead, it is likely that the spread will shorten to the lower end of the average band with cap rates remaining relatively constant.
We will have a full wrap of of the market in Mid January and re-assess our preferred investment strategies and sectors for the year ahead.
If you have any news, information or research reports you’d like us to share with the market, please feel free to send me an email at firstname.lastname@example.org or simply submit an article for us to review here.
Until next week