Investment Rating - The report indicates a stable rental performance in modern logistics, while general industrial properties experienced a slight decline in rental rates [1][6]. Core Insights - The leasing activities in Hong Kong's industrial property market were more active in Q4 2025, with an increase in expansions and relocations, particularly in the logistics sector [1]. - The vacancy rate in modern logistics improved, decreasing by 0.5 percentage points to 12.8%, while Kowloon East saw a decline in vacancy from 9.9% in Q3 2025 to 7.8% in Q4 2025 [1]. - A significant transaction involved Brookfield and Uni-China Group establishing a joint venture for cold storage, purchasing a property for HK$663 million, which will enhance cold storage facilities for food and medical products [3]. - The demand for logistics related to e-commerce in the PRC is increasing, influencing warehouse and flatted factory tenants to seek expansion [4]. - The industrial market outlook for 2026 suggests continued favorable conditions for tenants, with rental forecasts expected to decline by 0% to 3% [6]. Summary by Sections General Vacancy and Rent Changes - Modern logistics rental rates remained stable, while general industrial properties recorded a 0.4% decline quarter-on-quarter, with Kowloon East experiencing a larger decline of 1.2% [1]. - The vacancy rate in Kowloon East decreased significantly due to rent declines and incentives offered [1]. Significant Transactions - A notable new lease in the logistics sector was signed at G2000 Warehouse Building, covering approximately 123,600 sq ft [2]. - Brookfield's joint venture with Uni-China Group involved the purchase of a cold storage facility for HK$663 million, expected to begin operations in Q3 2026 [3]. Industry Movement/Trend - The logistics demand driven by e-commerce in the PRC is reshaping the market, with a focus on expansion in traditional warehouses and flatted factories [4]. - The presence of Mainland electric vehicle brands in Hong Kong has increased demand for car repair services, leading to new leases in Kwai Chung [5]. Market Outlook - The industrial market in 2026 is projected to remain tenant-friendly, with landlords becoming more flexible in negotiations [6]. - The demand for data center leasing remains low due to selectivity among international operators [6].

Investment Rating - The report indicates a positive outlook for the retail sector, with a growth in sales value and volume compared to the previous year [4]. Core Insights - Retail sales value growth for March 2025 compared to March 2024 is +2.7% when including fuel, while sales volume growth is +2.6% [4]. - The most recent three months show a year-on-year sales value growth of +2.5% and a sales volume growth of +1.8% [4]. - The quarterly performance indicates a GDP growth of 1.1% in Q1 2025, with retail volumes and values showing positive trends [8]. Summary by Sections Headline Figures - The report highlights significant growth in retail sales, with a notable increase in both value and volume metrics [2][4]. Sales Performance - The sales value growth for March 2025 is +2.7%, while the sales volume growth is +2.6% compared to the same month in the previous year [4]. - Year-on-year growth for the most recent three months shows sales value growth at +2.5% and sales volume growth at +1.8% [4]. Quarterly Performance - The quarterly performance data shows retail volumes growing by 1.9% in Q1 2025, with values increasing by 2.4% [8]. - GDP growth for Q1 2025 is reported at 1.1%, indicating a positive economic environment for retail [8].

Investment Rating - The report does not explicitly provide an investment rating for the office market in Bangkok Core Insights - Bangkok's total office supply increased to 6.314 million sq m, marking a 3.1% annual growth, with green-certified office space reaching approximately 2.1 million sq m, representing 33% of the total supply [4][10][33] - Net absorption for Q1 2025 was 31,000 sq m, leading to a 1% increase in total occupied space to 4.89 million sq m, driven primarily by demand for green buildings [6][16][33] - The overall occupancy rate improved by 0.5 percentage points to 77.5%, with Grade A buildings showing the strongest recovery [21][33] - Average asking rent increased by 0.3% quarter-on-quarter to THB 845 per sq m per month, with Grade A rents reaching a new high of THB 1,248 [24][33] Supply Overview - Total office supply in Bangkok rose to 6.314 million sq m, with over 800,000 sq m currently under construction [4][5][10] - The future supply pipeline is projected to add 1.1 million sq m, with 524,000 sq m expected to enter the market in 2025 [14][34] Demand Dynamics - Leasing activity remained positive, with net absorption of 31,000 sq m, while green buildings recorded a net absorption of 51,000 sq m [16][33] - Demand in the Central Business District (CBD) remained strong, with 35,000 sq m of net absorption, while non-CBD areas saw a slight contraction [16][32] Market Segmentation - The overall market occupancy rate rose to 77.5%, with Grade A buildings experiencing a 2.1 percentage point increase [21][33] - Grade B buildings had an occupancy rate of 76%, while Grade C buildings remained steady at 80% [21] Rental Trends - The average asking rent across all grades increased, with Grade C leading the quarterly growth at 0.4% [24][26] - The CBD office market saw a moderate rental increase, with average asking rents rising to THB 966 per sq m per month [27][31] Future Outlook - 2025 is anticipated to be a pivotal year for Bangkok's office market, with significant new supply entering the market [34] - Rising competition will challenge all asset classes, particularly for aging buildings that may need upgrades to meet tenant expectations [34][35]

Investment Rating - The report indicates a generally positive sentiment across various sectors, with stable returns expected in most categories [3][6]. Core Insights - The report highlights that the demand shock from tariffs supports lower inflation and interest rate cuts, with expectations for the Bank of England to lower rates by 25 basis points twice by the end of the year [8]. - Bond yields have stabilized after volatility, with the 10-year gilt yield dropping to approximately 4.50% from a peak of 4.75% [9]. - The UK government is encouraging pension funds to allocate 10% of their assets to private markets by 2030, aiming to stimulate economic growth and enhance returns [10]. Sector Summaries High Street and Retail - High Street properties maintain a yield of 2.75% - 3.00% with a positive sentiment [3]. - Retail properties on Oxford Street yield 4.50%, remaining stable [3]. Office and Industrial - Secondary regional cities show yields of 11.00%+, indicating a negative sentiment [6]. - Southeast business parks yield 8.00%+, also reflecting a negative outlook [6]. Warehousing - Secondary distribution yields are stable at 6.00% [6]. - Major distribution/warehousing properties yield 5.00%, remaining stable [6]. Healthcare and Specialized Sectors - Healthcare properties for non-profit operators yield 4.75%, stable over the period [6]. - Data centers yield 5.00%, maintaining stability [6]. Leisure and Hospitality - Prime leisure parks yield 8.00%, remaining stable [6]. - Budget hotels in London yield 4.75%+, indicating stability [6].

Investment Rating - The report indicates a cautious outlook for the industrial property market in Hong Kong, with rental rates declining and increasing vacancy rates in modern logistics properties [2][6]. Core Insights - The industrial property market sentiment in Hong Kong has continued the trend from 2024, with general industrial property rents decreasing by 2.5% to HK$12.5 per square foot, while modern logistics rents fell by 1.9% to HK$16.8 per square foot [2]. - There has been a slight improvement in the overall vacancy rate for general industrial properties, decreasing from 6.7% to 6.3%, whereas modern logistics properties experienced a significant increase in vacancy rates from 9.2% to 12.7% due to a lack of new leasing demand [2][6]. - Major logistics operators are expected to prioritize stable rental income over maintaining current occupancy levels, influenced by the development of AI technology and cloud services in mainland China, which may increase demand for electronic components and related materials in Hong Kong [6]. Market Overview - The report highlights that the overall market has remained stable compared to Q4 2024, with tenants seeking high-quality spaces at reduced rents [3]. - JD.com, a major e-commerce platform, is expanding its presence in Hong Kong, which may challenge existing online shopping platforms and physical stores [4]. - The government has extended the bidding for multi-storey building land in Tuen Mun and Yuen Long until July 25, 2025, indicating a lack of enthusiasm in the market for these projects [5]. Rental Trends - The report provides a detailed breakdown of industrial rental rates by region and type for Q1 2025, showing a decline in rents across various areas, with notable decreases in regions like Kwai Chung and Kowloon East [7]. - The modern logistics rental index and vacancy rates have shown a concerning trend, with the vacancy rate increasing significantly over the past quarters [8][9]. Major Transactions - Key leasing transactions in Q1 2025 include significant moves by major companies, such as Hellman Worldwide and Kintetsu, indicating ongoing demand for quality spaces despite the overall market challenges [3][11].

Investment Rating - The report indicates a strong investment interest in the hotel sector in Spain, with a total investment volume of €506 million in Q1 2025, although this is a decrease from €660 million in Q1 2024 [12][15]. Core Insights - Spain is projected to attract around 100 million foreign tourists in 2025, marking a significant recovery and growth in the tourism sector post-Covid-19, with nearly 94 million tourists recorded in 2024, a 12.3% increase compared to 2019 [3][4]. - The hotel investment landscape is primarily focused on upscale establishments, with four-star hotels accounting for 45% and five-star hotels for 24% of the total investment, reflecting consumer preferences for higher-end accommodations [12][13]. - Barcelona is highlighted as a key investment destination, representing nearly one-third of the total investment for the quarter, alongside significant investments in Madrid and popular coastal cities [13][14]. Summary by Sections Tourism Dynamics - The tourism sector in Spain is experiencing a dynamic shift towards experiential leisure activities, which has positively impacted international tourism [2]. - In the first months of 2025, Spain recorded over 10.4 million foreign tourists, a 7% increase compared to the same period in 2024, aligning with the forecast of reaching 100 million tourists for the year [4]. Hotel Investment Trends - The majority of hotel transactions in Q1 2025 were concentrated in upscale hotels, with notable investments in cities like Barcelona and Madrid, particularly near major tourist attractions [12][13]. - The report details significant transactions, including the acquisition of Hotel La Bobadilla in Granada and the development of a new hotel on Madrid's Gran Vía [16]. Market Performance Indicators - The average daily rate (ADR) and revenue per available room (RevPAR) metrics are crucial for assessing hotel performance, with RevPAR recorded at €72.97 in November 2024 [6].

Investment Rating - The retail sector in Spain is rated positively, with significant investment inflows and growth indicators suggesting a strong market outlook [10]. Core Insights - The tourism sector in Spain has seen a 7% increase in visitors during the first two months of 2025 compared to the same period in 2024, surpassing pre-pandemic levels by 22% [1]. - The International Monetary Fund has revised Spain's GDP growth forecast for 2025 to 2.5%, indicating a more dynamic economic outlook compared to the eurozone average of 0.8% [2]. - Retail turnover in February recorded a positive annual variation of 3.6%, although consumer confidence saw a slight decline of 3.5% compared to January [4]. Retail Investment Overview - The retail sector led investment inflows in Q1 2025, accumulating €891.4 million, which is nearly 35% of the total real estate investment volume for the period [10]. - Investment in the retail sector has shown a remarkable annual growth of over 225% in the previous year, with Q1 2025 exceeding the average of the past five years by more than 70% [10]. - Shopping centers accounted for approximately 77% of total retail investment, driven by strong performance in foot traffic and sales per visit, which increased by around 3% in 2024 [11]. Notable Transactions - The most significant transaction in Q1 2025 was Castellana Properties' acquisition of the Bonaire shopping center for €305 million, representing half of the total investment volume in this category [16]. - Other notable deals included Rivioli Asset's purchase of a 50% stake in the Xanadú shopping center for €200 million and Lighthouse Properties' acquisition of the Alcalá Magna shopping center for over €96 million [15][16]. Yield Trends - Prime yields in shopping centers, retail parks, and high street units have declined more sharply than expected, with current yield levels at 7.25%, 6.5%, and 4% respectively [12].

Investment Rating - The report indicates a stable outlook for the Brisbane industrial market, with prime yields remaining stable and a slight firming observed in secondary yields [9][17][26]. Core Insights - Industrial turnover in Q1 was recorded at $277 million, a decrease from $539 million in Q4, reflecting a return to levels seen earlier in 2023 [9]. - The largest transaction in Q1 was the sale of a multi-warehouse estate at 14 Dixon Street, Yatala, for $102.50 million, reflecting a core market yield of 6.35% [9]. - Vacancy rates increased by 21% in Q1, attributed mainly to new developments and lower leasing take-up, resulting in a total vacancy of 782,562 sqm [10][16]. - Prime net rents showed modest growth, with an increase to $160/sqm net, while secondary rents also saw a rise [22][31]. - Land values continued to appreciate, with sites under 5,000 sqm increasing by 32% year-on-year to $766/sqm [22][46]. Summary by Sections Industrial Market Overview - The Brisbane industrial market experienced a decline in turnover, with Q1 figures reflecting a significant drop compared to Q4 [9]. - Yields remained stable, with prime yields at 6.10% and secondary yields tightening by 64bps year-on-year [9][17]. Vacancy and Leasing Activity - Total vacancy increased to 782,562 sqm, with a vacancy rate of 5.2%, up from 4.3% in Q4-24 [16]. - Leasing activity was down 22% quarter-on-quarter, with a total take-up of 159,483 sqm [16]. Rental Growth and Land Values - Prime rents increased by 6.7% year-on-year, while secondary rents rose by 5.2% [22]. - Land values for smaller lots saw significant growth, with a 26.5% increase for sites 1-5ha [22]. Transaction Highlights - Notable transactions included the sale of properties at 14 Dixon Street and 836-854 Boundary Rd, reflecting strong buyer engagement and yield certainty [9][22].

Investment Rating - The report indicates a muted investment activity in the office market, with prime office yields remaining stable at 6.50% across the UK cities [6][18]. Core Insights - The leasing market remains resilient, with occupier activity reaching 1.4 million sq ft in Q1 2025, reflecting a 27% increase compared to the same period in 2024 [9][10]. - Larger requirements are driving occupier demand, with three leasing transactions exceeding 100,000 sq ft, the highest since Q4 2020 [11][12]. - The technology, media, and telecommunications (TMT) sector accounted for 20% of space leased, representing the highest proportion of occupier demand [13]. - A 'fight for quality' is evident, with 52% of total space leased being new and grade A, and a vacancy rate of just 3.0% for this segment [14]. - Investment volumes fell significantly, reaching £151.8 million, a 71% decline quarter-on-quarter and 38% below the 5-year Q1 average [15][16]. - The absence of high-value sales is noted, with 95% of transactions below £20 million, indicating limited liquidity at the upper end of the market [17]. - Prime pricing has stabilized, with yields remaining at 6.50%, reflecting a 25 basis points compression year-on-year [18][19]. Summary by Sections Aberdeen - Occupier take-up increased by 94% year-on-year to 61,942 sq ft, although 16% below the 5-year average [26]. - Grade A availability fell by 6% quarter-on-quarter to 122,134 sq ft, reflecting a 32% decline over the past year [26]. - Investment activity reached £7.7 million, 37% below the 5-year average [26]. Birmingham - Occupier take-up totaled 75,522 sq ft, a 45% fall quarter-on-quarter and 60% below the 10-year average [34]. - New and grade A space accounted for 81% of leasing activity [34]. - Investment activity reached £27.1 million, 40% less than the previous quarter [34]. Bristol - Occupier take-up was 92,995 sq ft, reflecting an 8% fall from the previous quarter [42]. - Grade A availability stood at 304,347 sq ft, stable quarter-on-quarter but 142% above the 5-year average [42]. - Investment activity totaled £35.8 million, 52% below the 10-year average [42]. Cardiff - Take-up reached 94,068 sq ft, 5% above the 5-year average [50]. - Grade A availability dipped to 291,760 sq ft, a 7% fall from the previous quarter [50]. - Investment activity reached £24.6 million, 77% above the equivalent period in 2024 [50]. Edinburgh - Leasing volumes reached 99,373 sq ft, 12% above the 5-year Q1 average [58]. - Grade A availability increased to 700,435 sq ft, 19% above the equivalent point in 2024 [58]. - Investment activity was £3.3 million, following the sale of 48-50 Melville Street [58]. Glasgow - Occupier take-up totaled 158,567 sq ft, 79% above the equivalent period in 2024 [66]. - The total market vacancy rate stood at 9.3%, down from 10.3% a year earlier [64]. - No office investment transactions occurred in Q1 2025 [66]. Leeds - Take-up reached 241,282 sq ft, a 53% increase quarter-on-quarter [73]. - Grade A availability fell to 140,362 sq ft, 48% below the 5-year average [73]. - Investment activity was £16 million, solely from the sale of the Mint Building [73]. Manchester - Leasing activity totaled 319,995 sq ft, a 14% increase from the previous quarter [81]. - Grade A availability fell by 9% quarter-on-quarter to 549,245 sq ft [81]. - Investment activity was £13.6 million, reflecting a 66% year-on-year fall [81]. Newcastle - Occupier take-up rose to 257,476 sq ft, 292% above the 10-year quarterly average [88]. - Grade A availability stood at 221,528 sq ft, a 17% fall compared to the previous quarter [86]. - Prime rents remained stable at £32.00 per sq ft, with a 31% increase since the pandemic [88]. Sheffield - Take-up reached 39,992 sq ft, 51% below the previous quarter [95]. - Grade A availability rose to 307,300 sq ft, 121% above the 5-year average [95]. - Investment activity reached £23.8 million, 76% above the 10-year quarterly average [96].

Investment Rating - The report indicates a positive investment outlook for the UK logistics market, with a total investment of £1.6 billion in Q1 2025, representing a 10% increase compared to the previous year [39]. Core Insights - Annual UK industrial capital growth accelerated to 5.23% in March 2025, up from 4.73% in February, while total returns rose to 10.40%, marking the first time above 10% since September 2022 [36]. - The UK vacancy rate stood at 7.3% at the end of Q1 2025, remaining stable quarter-on-quarter, with a notable demand for large warehouses contributing to this stability [39]. - Rental growth for UK industrial properties continued, with an annual growth rate of 5.4% in March 2025, slightly down from 5.5% in February [39]. Investment Market Summary - The total investment in the industrial and logistics sector reached £1.6 billion in Q1 2025, showing a 10% uplift from the previous year [39]. - US capital accounted for 33% of total investment in the sector last year, but has decreased to 27% in the current quarter due to market volatility [39]. - The report highlights a significant forward sale of a 390,000 sq ft warehouse in Avonmouth, Bristol, representing the largest forward funding deal of the year [39]. Occupier Market Summary - Take-up in Q1 2025 totaled 8.3 million sq ft for units over 50,000 sq ft, indicating a robust demand despite rising operating costs [39]. - The report notes that rental growth forecasts project an annual increase of 4.0% for 2025, with expectations of continued growth through 2026 and 2027 [39]. Development Summary - Approximately 20 million sq ft of new stock was completed in 2024, with 7.3 million sq ft expected to reach practical completion in 2025 [37]. - The report emphasizes the ongoing structural growth of the online retail market, which is driving demand for logistics space [39]. Market Commentary - The Global Supply Chain Pressure Index indicates that global supply chain pressures are in line with historic averages, despite rising shipping rates from the Far East to North Europe and the Mediterranean [39]. - Online retail penetration rates reached 26.0% in March, reflecting a significant increase and aligning with long-term pre-pandemic trends [39].