Focus on interest rates and ESG as lenders revert to core

The ‘tremendous’ volatility of interest rates makes it difficult for the market to forecast in the short- to mid-term and makes it hard to adapt which is a major preoccupation for property professionals at present.

The other prevailing theme is ESG, said CBRE Investment Management’s head of EMEA treasury and debt financing Duco Mook.

“ESG needs to be embedded in your system, it needs to be around green buildings. Investors are asking for it, lenders are asking for it. It’s a theme that is unavoidable,” he said.

“Lenders are making a flight to core, they are risk averse,” Mook added.

“But ultimately, they still have a balance sheet to deploy and they are willing to service their clients,” he added.

In terms of general liquidity in the market, Mook said CBRE IM is positive regarding the rest of the year. “It’s the volatility and the interest rates which obviously is more difficult to manage but, all in all, we are still positive…with caution and realism.”

Please click on the video above to watch the full interview or listen to the podcast below.