1Q2021 Cap Rates
Office 4.7 %
Retail 5.7 %
YOY Growth in Price per Square Foot
As of 4Q2020
Office -2.6%
Industrial + 8.7 %
Retail -9.7%
Deal Volume 2Q2020-1Q2021
Deals Priced $ 10M and Greater
Office $ 1.65 billion Industrial $ 1.49 billion
Retail $ 2.51 billion
YOY Growth in Deal Volume
As of 1Q2021
Office -81.3%
Industrial -33.4%
Retail + 13.1 %
1Q2021 Price per Square Foot
Office $ 326
Industrial $ 70
Retail $ 285
Data provided by Real Capital Analytics
In 2020 , Spain experienced a historic drop in GDP , but it has since rebounded and is now looking at 4.4 percent growth this year , according to CBRE ’ s Real Estate Market Outlook . Real estate investment in the country is expected to reach upward of $ 14.6 billion . The report also notes that “ an earlier recovery of the tourism industry and swift distribution of the European Recovery Fund Programme could lead to a stronger recovery .”
Looking at property sectors in Spain , logistics assets remain the darling of investors , followed closely by multifamily . As seen in the U . S . and in many other markets , the rise of e-commerce in 2020 created high demand for warehouse and other supply chain assets . Additionally , adaptive reuse of former factories and other blighted properties provides much-needed opportunities as buildable land is at a premium .
Conversely , hospitality and retail continue to struggle , with bank financing difficult to secure . As a result , refinancing and restructuring activity will be on the rise .
In office , rising vacancies will force rents to decline . CBRE ’ s report points out that “ the office market is growing increasingly polarized on both occupier and investor sides . The gap between the highest-quality properties and the rest will widen further .”
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COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE SUMMER 2021