Although yields are very tight, capital values remain very interesting compared to the previous cycle and other European markets. We are seeing new players with a value add profile in the Office market looking for secondary locations to meet their investment return requirements. In these areas rent increases have yet to happen.
Regarding Retail, the market has maintained its momentum from the last two years with high interest from specialized investors and product for sale. Regarding High Street, secondary markets are important for institutional funds and, of course, for private capital. It is a safe product with higher returns than Madrid or Barcelona.
The Logistics sector is showing the greatest shortage of product at the moment. The boom in e-commerce and the security of tenants is driving investors to enter speculative promotion projects, even assuming the risk of the commercialization of warehouses.
We estimate investment volumes similar to last year, around €12,000M. Offices and Retail HS will stand out compared to 2017.