For global capital in search of a home, Europe in its present straits is far from the obvious choice. Not by any means a homogenous opportunity, the Continent’s economies are nonetheless regrettably undifferentiated in their current growth trajectories. Even in Germany, which has served as Europe’s principal economic and political stabilizer since the financial crisis, the economy’s current robustness anticipates a mixed long-term outlook for growth. On balance—and in spite of record valuations in top-tier markets—global capital prefers the United States.
But there is another Europe. For commercial real estate-market participants making significant ventures across the Pond, this other Continent reflects an abundance of opportunities for investment and lending, born in part of the ongoing retrenchment of bank balance sheets and a coincident shortfall in the broader financing environment. The case for these high-quality and well-located investments is made almost entirely at the level of the asset. With few exceptions, the macroeconomic environment in Europe is a qualifier of the underwriting thesis rather than a supportive premise. Read More