PIE Events
- Nordics Property Breakfast
31 May 2012
Frankfurt am Main, Germany
Upcoming Events
- Property Debt Breakfast
20 June 2012
London
German office 'honeymoon period' to end with economic downturn later this year
German office valuations in major cities are likely to run up against growing macro-economic weakness later this year and into next, putting an end to the 'honeymoon' period of hesitancy after the rise in yields caused by withdrawal of investor interest, according to indications from Jones Lang LaSalle's new VICTOR index. JLL's Head of Valuation Advisory Andrew Groom, whose team developed VICTOR, told PIE in an interview that investor-driven price corrections have pushed average yields up around 100bp to 5.5%. "But we have not seen the impact on the occupier side; we are sitting in this sort of honeymoon period almost in the eye of the storm .. waiting to see how much the macro-economic negative effects will have on the occupier side," he said.