FT News Briefing Commercial real estate crawls back
47 snips
Feb 4, 2025 The podcast dives into the pause of Donald Trump’s tariffs on Canada, setting a hopeful tone for trade relations. It discusses the slow recovery of commercial real estate, with a shift in investor interest towards flats and hotels. Eurozone inflation has unexpectedly risen to 2.5%, prompting speculation about central bank responses. Meanwhile, the AI company Mistral, initially seen as Europe’s answer to US tech, faces fierce competition and funding challenges that threaten its growth trajectory.
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Commercial Real Estate Recovering
- Commercial real estate investment is recovering after a two-year slump.
- Low interest rates fueled a peak in 2021-2022, but rising rates and geopolitical shocks caused a downturn.
Slow Recovery
- The commercial real estate recovery is slow, with investment volumes up only 4% in 2024.
- Volumes remain half of the 2021 peak, suggesting a long road to full recovery.
Drivers of Recovery
- Central bank interest rate cuts are driving the commercial real estate recovery.
- Other factors include sellers accepting lower prices and the slow nature of real estate adjustments.