1. Denmark: Copenhagen hotel deal ranks among year’s largest
Danish pension fund Sampension and developer AKF acquired a Copenhagen property housing a Wyndham-branded hotel, one of the country’s biggest commercial property deals of the year as regional tourism increases.
The purchase of the property from Denmark’s AP Pension, for about 1 billion Danish kroner or $151.2 million, “is among the largest and most significant transactions in the Danish property market this year,” AKF said in a statement. AKF and Sampension formed a joint venture to acquire the building that includes the 484-room Comwell Copenhagen Portside Dolce by Wyndham, located in the city’s Nordhavn neighborhood near the famous Little Mermaid statue.
2. UK: Commercial loan defaults rise
New lending for United Kingdom commercial real estate showed signs of recovery at the end of 2024, though loan defaults posted an uptick in the year’s second half, according to the latest bi-annual report from Bayes Business School.
Researchers said new loan volumes reached £36.3 billion for the full year for an 11% increase from 2023, representing the first signs of a turnaround after investment volumes hit record lows in the first half of 2024. Most of the recovery was due to stronger lending activity during the final quarter of 2024, though default loans on lenders’ books rose from 4.9% to 5.9% of total volumes in the second half.
3. France: Robotized warehouse comes to life under Champs-Élysées
A large robotized warehouse will begin operating next year under the Champs-Élysées in Paris as developers aim to streamline logistics particularly for luxury retailers near the famed boulevard.
Business Immo visited the construction site of the underground warehouse, scheduled to open in summer 2026 with 10,000 square meters of storage facilities enabling fast, environmentally friendly deliveries. Developers and analysts said the area’s astronomical rents often make it unfeasible to use commercial space for storage, yet stores have a vital need for quick and reliable restocking.
4. Germany: Large office project moves forward without preleasing
Developers are proceeding with construction on a major Munich office project without preleasing, responding to rising demand for space in key German business hubs.
Investors Oaktree and Accumulata began shell construction on “The Verse,” including more than 70,000 square meters of office and retail space at Munich Central Station. Heiko Keppler, managing director in Oaktree’s European private debt division, said the firm sees “consistently high demand for high-quality office products in prime central locations,” even after two large prospective office tenants dropped out of the Munich project in 2024.
5. Canada: Avison Young leader urges political unity amid tariff disputes
A top executive of Canadian brokerage firm Avison Young is encouraging the country’s two major parties to work together to enact policies to benefit commercial real estate.
Mark Fieder, a principal and president of Canadian operations for the Toronto-based company, said tariffs imposed by U.S. president Donald Trump, along with the results of Canada’s latest federal election, have created uncertainty. Fieder said the prevailing Liberal Party, led by former Brookfield executive Mark Carney, and the Conservative Party can work with smaller parties to boost energy infrastructure projects and cut taxes, including those tied to first-time home purchases.
6. US: Developers use branded condos to finance luxury hotels
When it comes to real estate, luxury brands including Mercedes-Benz, Dolce & Gabbana and Baccarat are showing they have value beyond expensive cars and high-end accessories. The names, when attached to condominiums, draw steady enough demand to help fund development as some lenders balk at making hotel construction loans.
Hotel financing has become increasingly challenging, with typical lenders like banks tightening their belts as global market uncertainty grows. So branded residences — either as stand-alone luxury condominiums or as part of a larger hotel project — can help developers and their hospitality partners get funding, said Phil Keb, senior executive for luxury brand growth at IHG Hotels & Resorts.
This report was compiled from CoStar’s news publications in the United States, United Kingdom, Canada, France and Germany.