Quanta 2025 Outlook
The commercial property investment space enjoyed a year of consolidation in 2024 with a significant uptick in transactions in the back half of the year signalling that the market is poised for a busy 2025.
An increase in activity will mean more opportunities on the table for investors to look at. So, what are the key things to consider?
Across the board the message was consistent from the Quanta executive team. More opportunity necessitates a closer look when it comes to selecting opportunities and it’s critical that investors are ensuring the opportunity works for them and their investment mandate.
Head of Property Investments Chris Carrigan pointed out that fund managers who are needing to offload assets from their portfolio, are likely to ‘get rid of the assets that they don’t want first’ and we need to make sure ‘we’re not buying someone else’s problem.’
This sentiment was echoed by CEO Stacey Jones who believes a mantra of the Quanta team, will be as important as ever in 2025; ‘it’s the ones you don’t buy that are more important than the ones you do buy.’
With book values written down and sellers acknowledging that the decline in asset values was not a temporary phenomenon, there is bound to be plenty of activity in the transactions market. One thing that fund managers and investors alike will be keeping a keen eye on, is when interest rates will start to come down. Quanta Head of Funds Management Aron Bendell may not have a crystal ball but his more than 30 years’ working in the banking sector gives him a reliable insight.
In line with the major banks, Aron’s belief is the middle of 2025 is a likely time but noted that Quanta takes a conservative approach, ‘if rates did move again, up, that would ultimately have a little bit of an impact on the forecast but not significantly, because we do have some level of contingency around timing for the first cut as well as the actual base rate we’re adopting.’
On the investor relations side of the fence, Head of Investor Relations David Carpenter outlined that the focus in 2025 is continuing to provide investors tools to manage their investments, ‘information to make an informed decision before investing within the commercial property space’ and taking the time to meet investors face-to-face providing an opportunity for investors to speak to the team directly.