Europe’s office markets are facing their biggest test since the financial crisis as costs outstrip rents.
Rising interest rates and a broader tightening in financial conditions have driven the cost of servicing debt above rental income for the first time since 2007, according to an analysis by Bank of America.
But rising base rates are merely the tip of the iceberg, the bank added, saying that credit spreads had doubled for UK-listed real estate companies and almost tripled for European groups.
