Towards a recovery in the office real estate market?
The success of teleworking seems to be running out of steam with more and more companies calling for a return to the office for their employees. The announcement that particularly caused a stir recently was that of Amazon CEO Andy Jassy. The latter declared on September 16 that the 300,000 employees in the United States will have to return to the office five days a week from 2025.
The management of certain large French companies is also planning a decrease in remote work. This is the case, for example, ofUbisoftwhich asks its employees to return to the office at least three days a week. Before that, Axa and Michelin also called on their staff to return face-to-face.
This trend could have repercussions favorable on office real estate. This has in fact been battered post-Covid with the generalization of teleworking and the changing needs of businesses. After a price correction periodthe sector seems to be entering a new phase, with gradual return to normalized outlook.
Benoit Yerle, wealth management advisor for the specialized site Portail-SCPI.frmakes the connection between this news and SCPIs (real estate investment companies). “This “return to normal” should benefit the numerous SCPIs invested at least partly in office real estate. The crisis experienced by the sector contributed to driving the value of this heritage downward, which could lead to share price reductions at certain SCPIs. But this trend has not affected all SCPIs in the same way and others were very solid.“
To find out more about investing in SCPI, and identify the best of them, you can contact a Portail-SCPI.fr advisor for free.
Beyond offices, the rise of diversified SCPIs
A large number of real estate investment companies invest in office real estate, but not only. In this regard, diversified SCPIs have shown a good capacity to adapt to different developments in the real estate markets.
Some of them also display a double diversification. On the one hand, these SCPIs invest in different real estate sectors (offices, shops, logistics, health, education, etc.). On the other hand, they have assets spread over several European countries.
“Diversification has become a real fundamental movement on the SCPI market. In fact, the vast majority of management companies offer at least one European SCPI for subscription. Note also that most of the SCPIs launched in the last 2-3 years are European SCPIs”develops Benoit Yerle.
Furthermore, the best diversified SCPIs on the market display particularly attractive returns. This is the case, for example, of the SCPI Transitions Europewhich distributed the best return on the market in 2023 (8.16%). Then, the young SCPI Comet targets a distribution rate objective of 8% (not guaranteed) for the year 2024. Finally, Origin of the hearta pioneer of European SCPIs, already has a good track record and displays an internal rate of return over 10 years of 6.84%.
To determine the return that an investment in paper stone could bring you, you can carry out a free SCPI simulationwithout obligation and in just a few minutes.
The importance of diversifying your investment in SCPI
You probably know the expression “don't put all your eggs in one basket“. This is fundamental advice in terms of investment, particularly in the field of real estate. Indeed, in addition to investing in a diversified SCPI, it is important not to bet everything on one single vehicle but rather to favor several, which present different approaches.
Councilor Benoit Yerle illustrates the point: “From one SCPI to another, you will find very different investment strategies. Some, for example, target assets whose price is less than 5 or 10 million euros (small caps). Others, on the contrary, are interested in large buildings valued at several tens of millions of euros. Approaches in terms of rental yield and associated risks can also vary significantly.“
Diversifying your investments in SCPI is all the more important as it is a long-term investment (10 years minimum). And it is complicated to predict which types of assets or which sectors will be on the rise in 10 years. For good measure the risks of an investment in SCPI and get the most out of it, it is therefore essential to call on a sector expert, such as the advisors at Portail-SCPI.fr.
Past performance is no guarantee of future performance. Let us also remember that the capital invested is not guaranteed as part of the investment in SCPI.
