CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}
Buildings in the city (image) Buildings in the City (image)

Insights

The Signal Report: Global Guide to CRE Investing

Download Report

The Signal Report: Global Guide to CRE Investing in 2022
Get our insights.
Download

The Signal Report: Global Guide to CRE Investing

David Hutchings • 27/02/2022
Explore a quarter-by-quarter guide to investments in CRE in 2022.

Cushman & Wakefield’s 2022 Signal Report shows that recovery in all regions and sectors of the global real estate market will hit a new record in 2022. In this global report, our Global Head of Capital Markets Insights and Head of Investment Strategy for EMEA Capital Markets provide a quarter-by-quarter guide to investments in Commercial Real Estate (CRE) in 2022.  

Key Takeaways: 

  1. Activity in the global real estate market hit a new record in 2021 with a stunning Q4 that drove an annual increase of 55%. Demand will be just as strong this year and while rising rates, geopolitical tensions and finding the right opportunities will remain an issue, activity in the first half of the year could yet exceed 2021 and a 3% uplift is forecast for the year overall.  

  2. Uncertainty will add to the weight of money targeting liquid, core safe-haven markets but could also somewhat delay the rise in interest rates so widely expected and feared in the market. What is more, this comes against a still favorable backdrop for real estate in terms of the dynamics of investor demand and the structural shifts driving the need for more or different space. 

  3. The occupier market’s recovery will be slowed by uncertainty and the persistence of COVID-19, but in no way stopped. Indeed, while capital markets are leading the recovery, occupiers will be driving performance as economic activity, jobs growth and a focus on talent and innovation drive the imperative to get real estate right, resulting in renewed demand, rent inflation and further disparity between good and average assets. 

  4. What constitutes the “right asset” is evolving due to structural changes within technology and talent, as well as a brighter spotlight on ESG considerations. Many older assets are still relevant however and much of what worked pre-pandemic will still work as market health returns. 

  5. Inflation will continue to pressure global interest rates, though markets have already priced in significant monetary tightening. While the yield gap is closing, real estate will remain attractive thanks to its relative income and potential for the right assets to act as an inflation hedge.   

  6. A return to the old normal is not apparent and the shift from the pandemic is slower than anticipated due to the Omicron variant and the fact that businesses are taking advantage of this time to rethink how they operate and use space. 

  7. Sheds, beds, meds and niche assets will see a further increase in allocations – growing from a position of immaturity in some regions – while more traditional sectors offer a key route to access stock due to scale. However, investors must approach all sectors via a range of structures and capital routes to find opportunities and take advantage of all performance potential. 

  8. As a result of new user patterns and a demand for greater sustainability, reworking existing stock and building more effectively will be a priority – and an opportunity – on a global basis, especially in core markets with less focus on ESG to date. 

  9. The longer-term redesign of supply chains will refocus demand in all regions as well as capitalize on growth in low-cost emerging markets globally. 

To learn more, download your copy of The Signal Report: Global Guide to CRE Investing in 2022

 

Related Insights

What to watch 2022 (image)
Research • Economy

What to Watch 2022: 10 Indicators for Occupiers & Investors

Here are 10 key areas we believe are worth watching closely as occupiers and investors consider their evolving real estate strategies.
Kevin Thorpe • 21/01/2022
112021SupplyChaindisruptionswebcard
Insights

Global Supply Chain Disruptions - Implications for Industrial & Logistics Real Estate

We look at the factors contributing to the supply chain disruptions, assess how the disruptions are impacting the industrial-logistics sector, and offer a path forward as to when we expect these issues to be resolved.
Sally Bruer • 18/11/2021

Related Services

Capital Markets
Our capital markets teams leverage an integrated suite of investor services to deliver strategies to solve complex real estate challenges.
Learn more
Valuation & Advisory
Cushman & Wakefield’s Valuation & Advisory group provides sophisticated advice on real estate equity and debt decisions to clients on a worldwide scale.
Learn More
Global Capital Advisory
Look to our Global Capital Advisory group to develop value-driven capital deployment strategies and superior results.
Learn More

Ready to talk?

We look forward to connecting with you.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS