CBRE was the top-ranked firm for global commercial real estate investment sales during the first half of 2022, according to MSCI Real Capital Analytics. But perhaps of greater note is the comment of Chris Brett, head of EMEA capital markets.
Speaking alongside the news that CBRE’s market-leading share of commercial real estate investment sales was 22% in the Americas, 40% in Asia Pacific, and 20% in EMEA, Brett said: ‘Whilst we are experiencing extensive turbulence across the financial markets, we continue to see demand for the real estate sector. However, the speed of change will be felt across all geographies as price discovery unfolds.’
‘Despite the economic uncertainty across Europe, we are seeing repriced deals remaining attractive to capital in numerous key cities and countries.’
His comments come as ‘price discovery’ fast becomes a buzzword in commercial real estate circles. Though there is still significant demand for various types of real estate in Europe and deals are getting done, many in the market feel the value of assets is yet to be established, slowing the market down. Some price chips and renegotiations are taking place, brokers have confirmed to PropertyEU.
Geopolitical uncertainty is one of the factors compounding matters. On Wednesday, Russia’s president, Vladimir Putin, spooked markets and sapped confidence further as he talked about partial military mobilization of reserve troops to the Ukraine. Speaking in an address to the nation, he warned the West that he wasn’t bluffing as his country had ‘various weapons of destruction’.