The current global economic conditions complicate the applicability of US insights to Europe, highlighting significant differences in capital values and investor sentiment.
While US property values have yet to adjust significantly to weaker fundamentals, Europe has seen a swift repricing driven by changes in interest rates.
Europe boasts lower vacancy rates and positive office space net absorption compared to the US, which faces higher vacancies and negative absorption post-pandemic.
Lease incentives are significantly lower in Europe compared to the US, impacting operating incomes; Europe averages 10.3%, while the US can reach 30%.
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