2Q2020 Price per Square Foot
2Q2020 Cap Rates
2Q2020 Price per Square Foot
|
Office
5.6 %
Retail
6.6 %
Industrial
5.8 %
|
Office
$ 615
|
Retail
$ 350
|
Industrial
$ 138
|
1H2020 Investment by Sector |
|
|
|
|
Multifamily Industrial Hospitality
Retail
|
19 %
13 % 11 % 10 %
|
1H2020 CRE Investment
$ 17.9 billion
|
Data provided by Real Capital Analytics and JLL UK Capital Markets Review & Outlook
Like so many global markets , the United Kingdom ’ s commercial real estate market is feeling the effects of the COVID-19 pandemic , with $ 17.9 billion in CRE investment for the first half of 2020 , according to JLL ’ s UK Capital Markets Review & Outlook , published in September . The report notes that “ this represents a 34 percent reduction on the equivalent period last year and is 38 percent lower than the 10-year H1 average .”
In addition to COVID-19 , the U . K . still has the effects of Brexit to contend with , the full impact of which has yet to be fully realized . According to CBRE ’ s 2020 EMEA Real Estate Market Outlook , the implementation phase of Brexit after the transition period is expected to last for a year or more . During this time , “ the U . K . will not have as good access to EU markets as it has now .” While more than half of the country ’ s investment volume is from international investors , JLL ’ s report forecasts a drop in this percentage over the next 12 months with the top three capital sources projected to be China and Hong Kong ; Germany ; and the United States .
10 COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE FALL 2020