THE SOVEREIGN DEBT CRISIS & REAL ESTATE
Investors in prime real estate have less to fear than investors in certain Eurozone government bonds from the current crisis;
There are many tenants that the market considers a better risk than certain governments at the moment;
Even in the event of a sovereign default, lease contracts will still be valid and rent will still be paid.
Secondary property with vacant space or vacancy risk has most to worry about. Austerity measures to restore public finances will have an impact on occupier demand.
See our latest EMEA Viewpoint on Sovereign Debt Crisis Q1 2010 at the PDF link below.