1. UK: Government speeds exit from London offices
The United Kingdom government announced a major acceleration of a program that aims to reduce its central London office footprint by 55%, with implications for investors and developers in that area.
The government has committed to reduce jobs based in London by an additional 12,000 as it closes 11 offices in the capital, among actions targeting £94 million in annual cost savings by 2032. Previously announced changes include opening new office campuses in Manchester and Aberdeen, as new jobs are created in other U.K. towns and cities.
2. Mexico: Global hoteliers target Latin American expansion
Global hotel operators are optimistic about expansion in Mexico and other countries of Latin America and the Caribbean, based on rising tourism demand and despite recent economic uncertainties affecting international travel.
“We have government changes and socioeconomic situations happening on a regular basis, but we’re very bullish on the region long term,” Gilda Perez-Alvarado, chief strategy officer and CEO of the Orient Express brand for Accor, said during an investment conference in Florida. Accor is working on a deal to acquire 17 management agreements from Royal Holiday Group, in which Accor would manage six all-inclusive resorts in Mexico, and 11 city hotels and resorts in Mexico, Argentina, Puerto Rico and other Latin regions.
3. France: Hotel investment holds steady despite risks
While several real estate property categories have suffered severe discounting over the past three years due to the drastic rise in interest rates, France’s hotel industry has demonstrated its resilience, both operationally and financially. But to capture its promise of value creation, investors need to be prepared to take on increased risk, according to analysts.
French hotels attracted €2.7 billion in investment during 2024, jumping 25% from the previous year and the prior 10-year average, according to brokerage BNP Paribas Real Estate. Hotels accounted for more than 10% of the volume invested in French commercial real estate, spurred in part by a drop in office investments, but the share was up from the pre-COVID period, said Laura Ben-Ibgui, head of hotel transactions for brokerage JLL in France.
4. Germany: Property prices rise for fourth straight quarter
German real estate sales prices rose 3.3% from a year earlier in the first quarter, boosted largely by residential property deals and marking the fourth consecutive quarter of annual gains, according to an analysis of transaction data from more than 700 Pfandbrief banks.
Data showed residential property prices rose 3.6% from a year earlier, aided by gains as high as 4.8% for apartment buildings, as office prices increased 2.4%. The Association of German Pfandbrief banks cautioned that overall transaction volume remains subdued by historical standards, and pricing does not yet reflect market risks including trade conflicts and government plans to reduce debt.
5. Canada: Retail properties eyed for residential towers
A large swath of retail properties near a future metro station in the Montreal borough of Saint Leonard will be demolished to make room for about 25,000 housing units, according to a long-term plan that is crawling its way through the municipal approvals process.
Properties slated to be razed include the Carrefour Langelier shopping center, a property that developer Mach Group purchased in 2020 for $58 million. Plans call for redeveloping the site with five residential towers rising to 25 floors, well above the previous limit of 11 in the area as regional officials seek to encourage transit-oriented development near the metro station.
6. US: Bank of America plans 150 new branches
Bank of America plans to open at least 150 new branches nationwide by 2027, the latest instance of a bank tinkering with its retail footprint to enter growing markets and close locations with little foot traffic.
The second-largest bank in the U.S. by assets will open 40 new locations this year as part of the expansion and 70 more branches in 2026, according to a statement. The company identified only Boise, Idaho, as a market where it will expand in the new initiative, with plans to open a new branch at an undisclosed location in Nampa, Idaho, on June 9, and three additional locations in Boise in the future.
This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.