German property investment likely lowest since 1990s - CBRE

German commercial property investment is likely at less than e10bn this year, and in Frankfurt no more than e750m, making 2009 the weakest year since the early 1990s, say top excecutives of CB Richard Ellis. "This is quite clearly a buyers' market," Fabian Klein, head of German investment, told journalists. Residential property is also increasingly targeted by German institutions. CBRE lettings head Carsten Ape said take-up in Greater Frankfurt is likely to be no more than 250,000 sq.m., the lowest total since the 1990s. He warned that no large new supply is planned after 2011. "People are lacking either the money, the courage or the tenants... We will have scarcity of quality product to let in Frankfurt in 2012, 13, 14." Frankfurt investment head Burkhard Plesser said volume reached just e528m year to date, while Jarko Stilp, head of CBRE retail agency, said the era of large initial cash payments to buy out Frankfurt store lease contracts - 'key money' - is over. (See upcoming PIE/PFE editions for full story)