Global Capital Markets 2015
Will New Sources of Capital Extend the Cycle?
- Global investment volumes to grow in H2 2015 and 2016. Asia is the only regional exception, and London may be close to a plateau
- With weaker fundamentals in Asia Pacific, Japan is back on investor map, with offices and hotels in major regional cities expected to perform really well
- ‘Permanent capital’ to continue investing around the globe – strategically and with a long-term horizon in mind
- Europe and the US will see investors venture up the risk curve – and it is in the more secondary space that both rental growth and yield compression will be stronger
- New sources of capital are helping to extend the investment cycle, as well as driving ‘old capital’ expansion into ‘niche’ sectors
- These are value-add opportunities in Western European CBDs (bar the UK) for office and shopping centre assets in need of refurbishment
- In-fill light industrial is the new US opportunity to explore as changes in e-commerce and the re-emergence of single-family home building stimulate demand.