Ryder Request | Investment France | Shift Happens

Today is not the day to be taking your son to an all-day mini rugby tournament. Nor is today the day to be catching up with friends over an afternoon walk at RHS Garden Wisley. Today should only be about The Ryder Cup. No ifs. No buts. Whilst you may have already been watching it since it started at 7.10am on Friday morning, if you have any interest in sport whatsoever, then today is the day to firmly reacquaint yourself with your sofa, plug 405 into your TV remote (or 517 for Virgin Customers) and strap yourself in to watch the greatest sporting event in the world. Do it! The Weekly promises you won’t regret it. What more could you want from your Sunday? Twelve Europeans and twelve Americans going head-to-head with a couple of captain-cum-generals thrown in, drawing up war plans, toying with formations, driving up hills in golf buggies to survey the ongoing battle scenes. Despite Europe leading 10-6, with only the twelve singles matches to go, this afternoon has all the makings of another gut-churningly brilliant few hours of sport.

With the eyes of the sporting world firmly on the outskirts of Paris this weekend, it seems an appropriate occasion to touch base with the French commercial property investment market. And according to Savills, it appears to be in rude health. More than €12.5 billion was invested in H1 2018, 26% more than the average level observed over the last five years. Apart from 2016, a record year for investment volumes, it is the best performance on record. Ile-de-France is the main driver. The capital and its surrounding area accounted for 73% of volumes. The French market is certainly standing out, not least as many of its neighbouring markets have seen a fall in investment, with the UK (-9%), Germany (-8%), Italy (-29%) and Spain (-45%). French prime property yields have stabilised at record low levels (3.00% for core CBD office assets), and yet such levels still offer a yield arbitrage over government bonds. The spread with bond yields currently stands at around 220 basis points, well above the ten-year average (199bp). Although it's hard to contemplate from an historic standpoint, further yield compression should not be ruled out.

We live in exponential times, and thanks to reading some children’s homework that was sent home this week, The Weekly is now so much clearer about just how fast things are changing. For example, the Top 10 in-demand jobs in 2010 did not even exist in 2004; In 2006 we were doing one hundred million Google searches every day. Now, we're doing four and a half billion; The first commercial text message was sent in December 1992. Today the number of texts sent and received every day exceeds the total population of the planet; there are currently 540,000 words in the English language, about five times as many as during Shakespeare’s time; it took the radio thirty-eight years to reach an audience of fifty million users. TV did it in thirteen years. The iPhone? Just three and a half years. Facebook took two years. In 2016, the Pokémon Go app did it in just nineteen days; The amount of new technical information is doubling every two years. This means for students starting a new four-year university degree, half of what they learn in the first year will be out-of-date by their third year of study! 17th century French thinker, François de La Rochefoucauld, famously said, “The only thing constant in life is change". Tu n'as pas tort, mon ami!