UK Real Estate Navigator Q3 2024

Q32024 A cuarteriy revlew at the UK commerclal real ea:ate m,arket Economic update Global anid UK econoly CONTACT:VICTORIAORMOND,CFA Global economy Easing inflation and lower ratcs pave thc wav for global cconoinic rccoverv GLOBALOUTLOOK: PATHTORECOVERY Gross Domestlc Product Tl last cquatr sa cnc ct nvcrallcnomic rssilicncc. The glebal tallleagairsl inJklliu ttus Lirgoly uu'utl wunl,ankl im.eres1 rates are drininp.dorsiwards. w-le rhe In's glr.hal tlpsrwth finyast or 202- rexin=cuncz.iugxd in Oulebor al +3.2%, itdlogrkleu its 2025 tunuast 3y -10bps< (/uarl=rl Uls l2 cunlriet, trl gwi h. > c.tange s:r-in-yuar, sea:or: :llv ildjL-l :i M6anhlle. ecoomle: srnzr.hcxnecetatios tct th Us hyv- hecnupgraleci I: 2024. The IMF t:retasls'S GDF tU P2uv Dy +2.S7, - 1 by +20LpsPrnm irs previnus orecesr in ily. liorthe I.rn Area, cnpthi lga hee revlredIowur by -10hpn Lo 0.8%, in 2024. Fo22025, Itt: IME uxpxLs Uhu S .U gTuv by2.2% tl te Euru Area by 1.2 csing -yelcs. iit'n che liank af I'nglandCenrml'anks cnnrinme wirh thsir(UE:EE..rooan Cen.ral Bank (EcB:interest rates t> 4.75%. 3.25's and 4.753,arkl US Fuuorl Rusurv (Ecdi Tulltirgras.pecriely. GLOBAL BUSINESS ACTIVITY PICKS UP The Clubul Survis PMt Ius lu 53.l inx1olxt, up frm 52,9 in t*e n21. Gross Domestic Produkt Quarlrl, Ok GD? uwth, %rarue sar-Ju-sar, -ul:latl prices, sasuall wljused Jollowig t.7% etoll in Lhc prviousyllellcr. Ort a uollhiv bsis, GDP gr0.2% in Aupus1, rel>>unmine I'nnfla: gnptli In.in's- I= its Jecohe: 3121 upear, che IM1Iz.ise il: UK GDP gTulh tcrecasL LD+1. I% Iur 2024, uμ Jrc j.s prviuulsestimate αf i(0.7% In July. Fet 2025. theInI' anticlnates arrrnget grnz..h, prltlJK tnl forces.st to grcw hy +..&.. This.placus the UK as ths lhirl tas.eslnerlons over rhe nesr rwn years, [tailingcnly r.he t> and t'sllada. he UK uemployrelul rale Iell Le?2024, slownt trun the orevious three-1.0% in th tir nunths u Auguslr1narh perkd anes cnrifritahly Ielrtschc lo11g-rct:11 av:mgc of 6.7s BUSINESS ACTIVITY REMAINSEXPANSIONARY FOR NOW The t.X Xerlces PMI fell ro 52.13 InOcteber, fron n2.1 i. che prviou?IibLh, (narking ils 12 uonsutllivHlth ul uapansion in servius as tivity The Ik Manufactur' -g PN1cnnriacred rc 1y.y In Octcher. from i1.5Tiunulac uring autivily sinve April 2034in Septembcr, th tirst decline in UK INFLATION FALLS BELOW TARGETIN032024 Jk inllxticn fsll xhi.y in SeoteherLo 1.7%, bulow ltho PuE's 2% lz.rgol Jottle first :ime in uver 'hree vsurs. fxurdI'cnnnm'rexpe:te t.K Inflat inn tn drifru furtl1er tn 2.-"%: csr-cll:d, drivnby upard presure .rem h: Oigemttergy priu cp. I Novenixer, the Hot resumed itseas1n cyrle after raklng peuse InSepte:nher, reclucine ch sax: ryte by25tps: -" -1.75%. Ecunumisuwidc.yat its final mnetarv pellcy rutering ofux[xct lu BuE u kep ralus ull:hklnguurhe yaar In 1ecemlxar. tsjsltalFenng.:cs fnccast a cum:lxtivcI5otps vorth ul cls nexl ytar, ithrles speulel w lal w 3.25% by ieeild of 2025. Capital markets UK commercial real estate CONTACT: VICTORIA.ORMOND,CFA Capital markets Thc LK is the 1 largest recipient of cross border private cquit invcstment in 2o21 rT1 INDUSTRIAL#1.0FFICE #2 IN Q3 2024 UK quarterly imvestment volumes The t.X remalied the 3eccnd r1ns.invcsceci iarket glechally sl1d thc rop.ucz.Lien Iul crssburder capilal in Q32024. Lcrclun alsc cmnurgxl ds L':uea:linp. akba. ntetn fer crss-onlerimésrmers er tl-é wear r dar. Quaiteity rvsstneor volt mes. iolng arc gr UK cnr.imeTcisl real entute iGRI)invesmul loalled 8.s tillin in Q32024. Thtis xns a -25% dsxiu un Q22074 Ineest me't, alt hcugh a 112%es(9nsl1 0 t23 2 12: 31.4 biljiun in 202-1, +9% abuvuQ - tx3 UK GRF ivextmcnt cotalled[ .2323, nd -23 helow th i> (231u-yrear Inng term aretege. Ncnerhaless.the UK zFpuzrs Lo he aead of T.z.Lyulttor mirkuts in tuir rtuvu'tv, withx.ubal akl US CRE imvesue.re:orcling da'linee year-on-year In thefirst r.hrcc quarrets of rhe ycat. * Q 2021*.U: Ilusrial zentinus lu be heavilyLalrgeloxi by invustors, Iuworling LheThis pras fn'noad (ny offlces iL2.3hnj.shesl inves.ment in (3 20z4 i2.7m).Katxil i1.5'sn. Aprtenc fe1.abn.Hutel: :t0.8tn: anci Seniur Huusine $Ca