Pricing strategies in class A office real estate investment Europe 2022

Approximately one in four real estate investors active in the the office real estate market in the Europe was willing to bid above the asking price for value add assets, according to a survey conducted in early 2022. Nevertheless, about 17.5 percent of investors were on the lookout for value add assets on discount. In value-add office investments, the investor plans to perform improvements and increase the value of the asset. These investments also tend to have a lower occupancy rate and are considered riskier, with the potential for higher returns. In stabilized investments, on the other hand, occupancy is high and no extensive capital expenditures are needed to make the property attractive.