Commercial Investment Real Estate Spring 2020 | Page 12

WORLDVIEW:
Germany
4Q2019
Germany Cap Rates
Office
4.3%
Retail
6.7%
Industrial
8.2%
4Q2019 Germany
Price Points (Per SF)
European CRE
Powerhouse
Office
$345
$174.1 billion
Retail
$218 Industrial
$85
Germany’s CRE sales
from 2015-2019
Top 3 Sectors in
Germany in 2019
$18.2 billion
Retail $5.5 billion
Industrial $3.8 billion
Office
2019 Cross-Border
Investment Sources
$11.8 billion
United Kingdom $3.9 billion
Switzerland $3.4 billion
Austria $3.3 billion
United States
Data as of March 3, 2020, provided by Real Capital Analytics
G
ermany remains the commercial real
estate market powerhouse in Europe
with its strongest quarter for any Eu-
ropean country ever at the end of 2019, ac-
cording to Real Capital Analytics. In 4Q2019
alone, investments in German commer-
cial property reached nearly $37.4 billion,
allowing the 2019 total to push past the $87
billion mark for the first time. The 2019 total
represented a year-over-year increase of
10
COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE
3 percent. The United Kingdom came in sec-
ond at $67.3 billion; France took the third
spot with $47.7; and the Netherlands was a
distant fourth with $25.2.
It’s no surprise that Blackstone was
far and away the largest single buyer in the
European market, with nearly double the
volume of number two, Union Investment.
Rounding out the top 10 are Commerz
Real, AXA Group, Swiss Life AM, Patrizia,
Vonovia SE, BVK, Hana Financial, and ZBI.
What’s interesting to note is that six of the
top 10 investors in Europe in 2019 are head-
quartered in Germany. According to Senior
Director of EMEA Analytics for Real Capital
Analytics Tom Leahy, “This emphasizes the
weight of German equity that is being dedi-
cated to commercial real estate and also ties
in with the fact that 2019 was a record year
for Germany.”
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