- Sixth consecutive quarter of falling activity
- Build-to-rent market predicted to almost double in size by 2028
Commercial real estate is in flux, with institutional investment sinking to its lowest level on record as office and retail asset values continue to drop due to high interest rates and question marks over both asset classes’ future. At the same time, analysts forecast strong warehouse and residential asset value growth thanks to resilient tenant demand.
According to Q3 data from MSCI, European commercial property transaction volumes sank for the sixth consecutive quarter to their lowest level in 13 years. Based on the current dearth of ‘pending deals’ – as in, the commercial property transactions that are either under offer or in advanced discussions – MSCI anticipates even less deal activity for the final quarter of this year.