CBRE is currently number one Retail Investment Agency
CBRE, the world leader in commercial real estate services, see continuing strong demand from investors across the core sectors of office, retail and industrial with an increased demand for more specialist sectors such as hotels and residential. The retail sector in Q1 clearly dominated with more than EUR 900 mln transacted, followed by the office sector with a 20% share of total market volumes.
“The retail sector has dominated Q1, with a 63% share of total market volume. CBRE are delighted to have achieved the number one position in the market, having worked with CBRE GI on the purchase of the Letnany shopping centre in Prague and more recently having advised CPI on the acquisition of Zlaty Andel, Olympia Plzen and Nisa Liberec centres as part of a major €640 million cross border transaction. In addition CBRE advised the seller of a further significant regional retail asset.”
The total investment volume in Q1 2017 amounted to EUR 1.41 bln in 23 transactions and stood more than EUR 980 mln above the 10Y Q1 average. Q1 2017 was, after Q4 2016, the second strongest quarter in terms of investment volume in history. This means that on a rolling 12 month basis, we have seen EUR 4.7 billion invested into the Czech market, making it the most successful period on record. The Q1 figures were boosted significantly by three EUR 200+ mln transactions – Letnany shopping centre in Prague, Olympia shopping centre in Brno and CPI’s purchase of a major cross border predominantly retail portfolio. Local investors were the most active with a 37% share of the market in Q1, followed by German investors who accounted for a 33% share.
Despite current political uncertainty in Europe and the US, we forecast that the current market will continue to run for a further 18 months, with investors keeping a close eye on the rate of global interest rate rises.