In PIMCO’s most recent real estate market outlook, Turning the Corner? Commercial Real Estate Themes for 2025, we asked ourselves the question, is the downturn in commercial real estate coming to an end? The collective view of senior investors from PIMCO’s commercial real estate platform was that the recovery will likely be slow and uneven, requiring a strategic focus on specific geographies, sectors, and assets. 

The volatility of the past few years has created a new investment dynamic and operating environment, one with a much shorter real estate investment cycle. Markets are recovering at different speeds, resulting in a fragmented Europe: while the UK, Germany and France are facing structural challenges, Spain and Italy are benefitting from clearer growth dynamics. 

In this environment, the investment case for active asset management – redeveloping, repurposing and upgrading buildings – has taken on far greater value, particularly given the attractive pricing being seen in parts of Europe’s real estate sector. This means, at this point in the cycle, finding opportunities which feature strong Net Operating Income growth and creating value within individual assets. 

Read the full ‘Thought Leadership’ article at the link below