Dublin,
13
July
2016
|
17:49
Europe/Dublin

Investment Digest

Provides Unique Insight Into Irish Commercial Real Estate Investment Market

In a market first, CBRE and Allsop Ireland have collaborated to publish a comprehensive report looking at the commercial investment market in Ireland across the full spectrum of transactions, large and small, throughout the urban and rural divide.

In what will be a bi-annual publication the study will combine Allsop’s rich database of commercial transactions with the data and research capabilities of CBRE’s market leading research department.

 

Read the full report here.

Enda Luddy, MD CBRE Ireland
The availability of data in any market is hugely important, none more than in the property market. We hope the aggregated data provided in this report brings a measure of clarity on the detailed information now available”.
Enda Luddy, MD CBRE Ireland

At the moment, other than data collected by the State on stamp duty receipts, which gives some limited insight on the volume of transactional activity in the non-residential property market, there is no central repository for data on commercial property transactions. Investors therefore have to make investment decisions and underwrite transactions based on a myriad of different data sources, all of which are collated using different assumptions - an issue that has been pointed out to respective Governments over recent years.

Stephen McCarthy, Managing Director, Allsop Ireland said:

“Reliable, real-time information is the cornerstone of every commercial investment decision, whether strategic or modest in nature, helping to mitigate risk and promote better informed decision making. For our part, as a data rich business we aim to meaningfully contribute to an otherwise opaque market and we are delighted to partner with CBRE, the global leader in the field of property research”.

The research shows that there is a considerable divergence in buyer type depending on the asset price. Over 70% of the buyers of income-producing assets worth over €1 million during the first half of 2016 comprised institutional funds, with 13% of the value of transactions of more than €1 million purchased by private buyers and 10% purchased by property companies. In contrast, for tenanted assets that sold in the six month period with a purchase price of less than €1 million the largest proportion (63%) was purchased by private buyers. It transpires that almost half the transactions signed in H1 2016 had a value below €1m, demonstrating the value of a report that analyses the entire trading investment market. 82% of properties below €1m were bought by Irish investors, whereas only 24% of sales above €1m were to Irish buyers.

We have produced a very comprehensive piece of research on transactional activity in the commercial property market in the first six months of 2016 which confirms that there are huge divergences in the prices per square metre and initial yields achieved in different sectors and regional locations, with initial yields achieved ranging from 2.3% to 27.71% in the period. This clearly emphasises the fact that every investment transaction is indeed unique.

The CBRE & Allsop Ireland investment digest will provide a unique perspective on liquidity and buyer profiles in different regional locations, sectors and price brackets, feeding valuable data into an existing information vacuum. This bi-annual report will greatly assist investors to make informed decisions, to assist lenders seeking to provide staple debt into the marketplace and to aid sellers who wish to accurately gauge demand.

It will release much needed real-time information on transactional activity into the public domain.

 

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 165 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, business rates and compulsory purchase, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie/ni.