In the panel discussion, "European Commercial Real Estate Lending: A Hard or Soft Landing?", moderated by Ana Luz Silva Robles, CFA (Moody's Ratings) and featuring panellists Clarence E. Dixon (CBRE), Ian Guthrie (JLL), and Juergen Helm (PGIM), the participants analysed potential scenarios and their impact on investors, financiers, and project developers. They discussed the challenges and opportunities offered by the changing market.
Our Key Takeaways:
The panellists showed cautious optimism, predicting a soft landing for Europe’s commercial real estate sector despite ongoing concerns. Key trends include a shift toward smaller, tailored portfolios over large consolidated ones. Southern and Eastern European markets are adapting faster to current conditions than Germany, as reflected in prime yields: Germany (Logistics): 2.5%, Spain: 4.0%, Poland: 4.3%.
The sector now requires a segmented approach to asset classes. While banks lag in adaptability, debt funds show flexibility. Offices face challenges unless they prioritize sustainable practices, while asset classes like hotels, senior living, and data centres have gained mainstream interest.
In conclusion, disciplined, responsible actions from all market participants are essential to restoring the sector’s full functionality. Strategic focus, resilience, and collaboration will enable stakeholders to meet challenges and drive sustainable growth.