Low vacancy and leasing risk make Europe’s offices a draw

Historically low vacancy rates and “extremely manageable” leasing risk are the attractions of the European office market as far as real estate investment manager SFO Capital Partners is concerned.

SFO’s chief executive officer Mohamad Abouchalbak said that in any case such leasing risk is priced in, “so for us it’s mainly being able to focus on quality product that can attract quality tenants in prime locations.”

The company has a presence in the region, where its focus is the office market, light industrial and logistics, and the USA where it concentrates on residential to rent.

“We’ve acquired some 6000 multi-family housing units and we continue to aggressively acquire and grow our portfolio in the US,” he told Real Asset Insight’s Richard Betts.

“We’ve invested actively in Germany, where we are present and in Paris, where we are also present.”

Abouchalbak also explained: “We do take some opportunistic development risk and we have done a number of developments in London.”

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