Key Points
LONDON, Nov 3 (Reuters) - The troubles faced by co-working titan WeWork (WE.N) are darkening the outlook for the world's largest business hubs, where rising office vacancies are already heaping pressure on investors set to refinance big-ticket mortgages next year...
Backed by Japan's SoftBank, WeWork aimed to revolutionise the office market by taking long leases on large properties and renting the space to multiple smaller businesses on more flexible, shorter arrangements...
What's more, the gap between what investors believe assets are worth and what prospective buyers are willing to pay is between 20% and 35% in core office markets - "far worse than the height of the global financial crisis", MSCI said.. MSCI said prices in Europe's two largest office markets, Britain and Germany, would have to fall another 13%-15% to bring market liquidity back to its long-run average...
London office vacancies have surged to a 30-year high, Jefferies also said in September, with average lease lengths on central London offices sliding to six years from 11.6 years a decade ago, according to BNP Paribas Real Estate...
"We're at a massive turning point in the real estate investment market globally," Jose Pellicer, head of real estate strategy at M&G Real Estate, said.. "For the last 20 years, property yields have been higher than financing costs..
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