Insights from NATAM Report, No. 45 – First half of 2020
- During the month og May to June 2020, office rental transactions were made at a decline between 5%-10% in rental prices compared to the prices at the beginning of the year. Additionally, the asset owners improved commercial terms for reterns, including by ganting “grace” months, renovation/ adjustment budgets and postponing rent payments.
- The significant demend for storage areas in 2019 also continued during the first half of 2020. The demand for storage areas was “invigorated” along with and due to the consistent trend in recent years of increasing e-commerce, an increase which requires large scale storage and distribution areas.
- The level of returns on income-bearing logistics assets stabilized at approximately 5.5%-6% in “prime” locations, and at approximately 7%-7.5% in peripheral areas, depending on the type, quality and location of the assets.
Natam Report No.45 | First half 2020
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