As we approach the conclusion of 2023, we contacted the founders of Avenue to reflect on the events of 2023. Faced with the complexities of a shifting financial climate, they share insights on fostering
growth and embracing sustainable solutions.
Fostering growth in a challenging financial climate
Due to the inflation scare at the end of 2022, interest rates have been on the rise all throughout 2023, which inevitable had its effect on the market.
Kenneth succinctly captures the essence of the industry, stating, “Everything in the commercial real estate industry begins and ends with interest. The tight connection between inflation and interest rates has led to a continuous rise throughout the year, resulting in loans becoming three times more expensive than just two years ago. This notable surge in costs has undeniably cast a cooling effect on the market.”
However, Avenue’s foresight and adaptability shine through. Despite the challenging landscape and the overall lower transaction volume, the brokerage managed to grow.
Hendrik attributes this success to a more personal approach and a deep engagement with investors on all fronts: “Investors, retailers, and sellers remain motivated to engage in transactions, but more than ever, they are looking for a broker who answers all their questions and actively helps them in navigating the complexities of real estate. This renewed focus has led us to deeply engage with investors on all fronts, providing strategic advice on financing, sustainability, and ESG considerations.”
The revival of inner-city real estate
Another trend Avenue sees continuing from the first half of this year is the revival of inner-city real estate. Stijn explains, “Looking at take-up, we see that the amount of newly rented square meters in the city has been on the rise for two consecutive years resulting in a consistent decrease in vacancy rates, indicative of a thriving market. The emergence of numerous new brands opening locations and investment transactions collectively signal a positive trend within the city center.”
Embracing sustainable solutions
Driven partly by governmental obligations, such as the mandate for EPC certificates for retail properties, ecological considerations are now integral to investment decisions. Investors, as well as financial institutions, are increasingly factoring in potential costs related to sustainability when evaluating property purchases.
Avenue’s commitment to advising on sustainability is evident in their proactive approach in connecting with the right partners to provide optimal solutions for investors and retailers. “We have delved into new regulations, technologies, and solutions, to be able to offer valuable insights and advice to our clients. This commitment not only aligns with the evolving market trends but also positions Avenue as a thought leader in sustainable real estate solutions.”, says Hendrik.
As Avenue looks back on the challenges and triumphs of 2023, it’s clear that their growth, adaptability, and commitment to sustainability have been pivotal in shaping a successful year. Stepping into 2024,
the company is conscious of the challenges that lie ahead. Nevertheless, Avenues is looking to consolidate this success with an unwavering commitment to excellence in commercial real estate.