CONSOLIDATION PHASE SLOWS DOWN OFFICE INVESTMENTS
The office investment markets are still in a consolidation phase after the first nine months. In addition to the high cost and difficulty of obtaining debt capital and the still incomplete pricing phase, the stuttering economic engine is also hampering investment activity. At just under € 4.6 billion, the transaction volume was therefore weak, as expected, and 76% below the comparable figure for the previous year. The ten-year average was also significantly undercut by 70%. Nevertheless, office properties remain the most important asset class with a share of 28% of the total investment volume. The reasons for the low transaction volume are in particular the lower corporate investments in the context of a sluggish economy as well as more difficult and more expensive equity and debt capital procurement. The more difficult financing environment is also clearly reflected in the almost complete absence of portfolio deals.