In addition to 5 European sector reports, team publishes second annual Global Data Center Report
LONDON, Feb. 6, 2025 /PRNewswire/ -- Green Street, the leading provider of trusted commercial real estate intelligence and unbiased insights, has released its 2025 European Sector Outlooks, providing forward-looking insights into market fundamentals and valuations across five key property sectors: hotels, industrial, office, residential, and retail. Green Street also released its second annual report covering the global data center market. The Green Street team has seen a dramatic increase in global data center investment, influenced heavily by the growth of AI services.
"Each year, we assess how our 2024 predictions performed and learn from what transpired in the previous 12 months. These outlooks also give us the chance to look forward, exploring the idiosyncrasies of different types of properties and the potential investment opportunities," said Peter Papadakos, Managing Director and Head of European Research, "We know our readers will find this research thoughtful and actionable."
Highlights from this year's European Sector Outlook reports include:
- For hotels, 2024 was a strong year, in part due to an exceptional event calendar. In 2025, pricing power appears to be waning, and operators are focused on boosting occupancy rates.
- The industrial sector in Europe is the private-market darling. European market rents continue to climb, and nearshoring may benefit the industry further.
- In office, there's been a bifurcation of 'A' space and 'B' space. The Work From Home threat to aggregate demand has stabilised but additional headwinds may emerge in the form of flex offices and AI.
- The residential investment market in Europe is not as large as in the U.S. but investment appetite for the space is huge. Market rent growth decelerated in 2024 but continued at a strong pace. Wage increases should help to mitigate housing affordability concerns.
- The retail sector has navigated its existential crisis. Tenants are demanding more space in the best performing centres. Averages belie the full story and there's a bifurcation between A+/A and B+/B shopping destinations.
The Global Data Centers Outlook covers the landscape and markets where investments have the biggest opportunity for return. According to Green Street analysts, "hyperscale tenants will sign the bulk of new deals as '25 data center investment budgets increase." The largest challenges for the industry are access to power, transmission of electricity and obsolescence.
To request a sample outlook report from Green Street please visit here.
Register to attend this year's sector outlook webinars, here.
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About Green Street
Green Street is the leading provider of actionable commercial real estate research, news, data, analytics, and advisory services in the U.S., Canada, and Europe. For nearly 40 years, Green Street has delivered unparalleled intelligence and trusted data on the public and private real estate markets, helping investors, banks, lenders, and other industry participants optimize investment and strategic decisions. The firm delivers exclusive market information, conclusion-driven insights, and predictive analytics through a SaaS platform. To learn more, please visit www.greenstreet.com.
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