Where do European Property Values Go fro here?

Key Assumption: Spreads Will Adjust

Office Yield vs 10Yr Bond Yield (Avg 273 bps*)

Industrial Yield vs 10Yr Bond Yield (Avg 335 bps*)

-1% 0% 1% 2% 3% 4% 5% 6% 7% 8%

-1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

Forecast

Forecast

2002

2004

2006

2008

2010 Office

2012

2014

2016

2018

2020

2022

2024

2026

2002

2004

2006

2008

2010 Industrial

2012

2014

2016

2018

2020

2022

2024

2026

10Yr Gov. Bond

10Yr Gov. Bond

Source: MSCI, Moody’s Analytics, Cushman & Wakefield Research *Spreads from 2001 to present

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