Investor and tenant focus on core will polarise 2023 market
A more binary market will develop in 2023, predicts Faro Capital Partners’ managing partner Guillaume Turcas.
While “core willl become even more core”, Turcas said that in terms of location and product, the “left aside” assets – whether office buildings, hotels or retail – will be completely abandoned from the investment and tenant perspectives.
He said discussions with real estate managers of large companies have revealed that they want less space but in prime locations. They still need to attract talent, notwithstanding the likelihood of a recession. “They really need to get the best out of their real estate assets. It’s the same also for retail and hotels, where we see a huge concentration on the top profiles.”