European Real Estate Markets Frozen by Global Pandemic
- Tenants beg for rent cuts as governments force shutdowns
- Asset managers blame uncertain values for freezing funds
Bankers could be seen fleeing the London headquarters of Commerzbank AG on Tuesday, cradling computer monitors as they face an unknown stretch working from home.
A block away, the stores of One New Change, the stealth bomber-shaped mall opposite St Paul’s Cathedral, are almost entirely empty, already prompting retailers including Hennes & Mauritz AB’s H&M clothing store to seek rent cuts from landlords. By Thursday, Europe’s real estate capital was bracing for the prospect of a full lockdown.
Across the continent, real estate markets are going into hibernation as investors struggle to gauge the impact of a widespread shutdown on their tenants’ ability to pay rent. The list of companies begging for concessions from property owners is rapidly growing. Meanwhile, the pile of postponed property deals mounts.