A report from CBRE Group showed that partly due to an improved inventory of top office space in Europe, the region experienced increased investment demand.
There was approximately €12 billion (USD $15 billion) in office investment in Europe during the first quarter, which was approximately half of the market's total in that time period, World Property Channel reported, citing the data. There was a 6-basis-point rise in average prime yield during the quarter for the office sector, which brought the total figure to 5.69 percent.
"We are finding that prime retail property remains in strong demand from investors; however, after the high levels of activity in recent years the supply of good new investment opportunities was very limited at the start of this year," Jonathan Hull, head of EMEA capital markets for CBRE, told the news source.
Furthermore, it is expected that there will be between €45 and €50 billion in office space assets transacted during 2012, and this could be helped by more significant activity from pension and wealth funds from abroad, the report added.