The European Real Estate Forum – EREF

Vital role in business and industry

BUSINESS
Real estate investment plays a vital role in facilitating European business and industry. The provision of appropriate premises is equal in importance to plant and machinery as a vital factor of production, while real estate investment is also critical for providing a healthy, safe and pleasant working environment in the services sector.
While owner occupation remains the preferred option for a significant minority of business occupiers, the majority of European commercial real estate is held by third-party investors. Their preference for leased space and associated services enables greater flexibility and agility for European business. Moreover, the ability to lease rather than own real estate enables many businesses to release capital for investment in expansion, productivity gains and R&D. The use of capital for investment rather than consumption results in a multiplier effect for economic value creation for both real estate investors and business occupiers.
SOCIETY
The regeneration of the built environment enables sustainable economic growth. It can entice businesses to relocate for better accessibility, more appropriate business space, and improved access to services. It also rejuvenates cities through the provision of residential rental, retail, leisure, education and health facilities. Private and publicly listed property companies spear-heading urban regeneration partnerships do so with capital (debt and/or equity) support from institutional investors. Moreover, investment in property provides them with an attractive and consistent income stream.