Along with five European sector reports, the firm has also published its second annual Global Data Center Report.
LONDON, Feb. 6, 2025 — Green Street, a leading provider of commercial real estate analysis, has unveiled its 2025 European Sector Outlooks. These reports offer forward-looking perspectives on market trends and valuations across five major property sectors: hotels, industrial, office, residential, and retail. Simultaneously, Green Street released its second annual global data center market report. The company notes a significant rise in global data center investment, largely driven by the expansion of AI services.
“Our annual assessments review the accuracy of our 2024 predictions and incorporate lessons from the past year. These outlooks also provide a forward-looking perspective, examining the unique characteristics of various property types and potential investment opportunities,” commented Peter Papadakos, Managing Director and Head of European Research. “We believe this research will be both insightful and practical for our readers.”
Key findings from this year’s European Sector Outlook reports include:
- The hotel sector enjoyed a robust 2024, partly due to a busy events calendar. However, pricing power seems to be weakening in 2025, with operators concentrating on increasing occupancy.
- Europe’s industrial sector is highly attractive to private investors. Market rents are continuing to rise, and nearshoring could provide further benefits.
- The office sector shows a clear divide between prime and secondary properties. While the impact of working from home on overall demand has stabilized, challenges may arise from flexible workspaces and AI.
- While smaller than in the U.S., European residential investment is attracting significant interest. Market rent growth slowed in 2024 but remained strong. Wage increases should help to ease housing affordability concerns.
- The retail sector has overcome its challenges. Tenants are seeking more space in high-performing locations. However, performance varies significantly between top-tier and lower-tier shopping centers.
The Global Data Centers Outlook examines markets with the highest investment return potential. Green Street analysts predict that hyperscale tenants will drive the majority of new deals as data center investment budgets increase in 2025. The main industry challenges are access to power, electricity transmission, and technological obsolescence.
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Green Street is a leading provider of commercial real estate research, news, data, analytics, and advisory services across the U.S., Canada, and Europe. For almost four decades, Green Street has provided high-quality intelligence and reliable data on public and private real estate markets, assisting investors, banks, lenders, and other industry professionals in making informed investment and strategic decisions. The firm delivers exclusive market data, insightful analysis, and predictive analytics through a SaaS platform. For more information, please visit .
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