Is real estate really an inflation hedge? ThePrime asks its readers…
We've been stumbling from one crisis to the next since 2020, straight into an inflation hurricane. People seemed to think inflation was a thing of the past, never connecting it to the value of their own apartments and property funds that for years did nothing but gain...
John Gabrovic: Building (and leveraging) community is key
“Earn the Commute” “Both office developers and retail operators will need to be better at what they do – creating work environment experiences that are not somewhat, but significantly better than what workers have at home. And retailers have to give consumers...
Karolis Adlis (WP Carey): Leasebacks work in any environment
It was in Warsaw earlier this summer that I met with Karolis Adlis, Executive Director of W.P. Carey. It had been a while since I’d been in touch with the company, so I was curious how an investor that’s only ever interested in sale and leasebacks was handling the new...
Zuzana Kanalová (VÚB): Resi is coming back, but not commercial RE
How have you been forced to adjust your lending business over the last 18 months? The changes started during the second half of last year. For example, there was a halt to sales in the residential market. In the 70 or so projects we’re involved in, there were just a...
Radka Novak (Cushman & Wakefield): Demand’s not the problem
No new offices have started for the last three quarters. What’s stopping the developers? Is it concern about demand? It's a cocktail of concerns. You can't really say for all developers what's the biggest reason stopping them. We’ve spoken to several about it and we...
ThePrime Pod: Stuart Jordan (Savills) – It’s all about the debt
What do you get when you combine falling real estate valuations with higher interest rates and lower LTV in an inflationary environment? You get a commercial property market where big transactions are scarce, and brokers don't know what price to list assets at. “If...
Mark Robinson (Encor): We’re in Year 3 of a 7-year cycle
Isn't persistently low unemployment going to make it tougher to curb inflation? You're not wrong about that, which is a problem for those who think that interest rates will fall soon. The CEE economies are geographically very well positioned, serving other economies...
Savills: Prague office yields still too low
According to current market pricing, yields on prime European offices have risen, but there's a good deal of variation between the 23 individual markets Savills surveyed recently. In Q1 2023 alone, it calculates a 19 bps increase, led by Amsterdam (+40 bps), Frankfurt...
