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Retail and offices showed the biggest drops in evaluation
08 September 2020 | Vanessa Sousa

Retail and offices are the more affected segments within traditional real estate assets, according to the evaluation carried out until the 30th of June.

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The latest data from consultant CBRE leaves no room for doubt. Retail assets’ assessments’ evolution reached -3.85% and offices registered -2.78%. These were the lowest numbers amongst all segments since the multifamily housing segment had their assets assessed at -1.28% and the logistic segment only at -0.48%.

On this downward review of retail spaces, Fernando Fuente MRICS, national director for assessments and consultancy at CBRE España, explained that this segment «was the most affected by the pandemic and the effects of its operational shutdown» and now «investment demand and occupancy are low, with a slight trend to bounce back in terms of yields combined with low prices and rents».

The office valuation drop can be the reason why this is now «the segment which shows greater uncertainty», explained Fernando Fuente, who assumed, however, that the segment «will reposition itself in the mid-term based on sustainability, efficiency and safety». He further added that «investment demand remains very active and occupancy demand remains stable, although the trend is for rents to lower between now and the end of the year».

This information was revealed last week within the latest Índice CBRE (CBRE Index) which «shows the evolution of the valuations from assets belonging to listed companies assessed by CBRE, representing 47% of the capitalisation from this type of vehicles within the Spanish stock markets (IBEX35, Mercado Continuo and MAB)», it can be read on a note issued by the consultant. 285 buildings estimated at more than 10.000 million euro were considered to carry out this study.