Nordicum - Real Estate Annual Finland 2019 - Page 55

proverbial basements of industry players: there’s a lot of capital, earmarked for real estate, that has been raised from investors that still needs to find a happy home. “There is unallocated capital all around Europe, and some of it is bound to make its way to Finland.” In the RAKLI-KTI Property Barome- ter October survey, the prime yield for Hel- sinki CBD offices was assessed at 4.1% (10 basis points higher than in last spring’s sur- vey). Office yields also increased slightly in all other cities. Prime retail property yields also increased slightly, while yields for res- idential properties continued to decrease and stood at 3.7% for central Helsinki. The Barometer respondents expect yields to remain rather stable during the next 12 months. Get Creative In his ten years in the sector, Tiensuu has seen the number of players increase and liquidity improve. Solid real estate assets of the yesteryear – such as retail or logistics – have been joined by other types of proper- ties with perhaps more nuances. “Rental plots and multispace office solutions are examples of this. As new niché items keep appearing and gaining success, it seems clear that it pays to be innovative,” he says. Part of the outside-the-box mentality is recognizing the ongoing transition from infrastructure to services. “The entire Space as a Service angle is on the rise and many players are explor- ing new roles as service providers more and more.” l Nordicum 55