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German Property Slump to Widen Office Quality Gap, Moody’s Says
Germany’s real estate woes have led to a slump in construction, which will deepen the divide in credit quality between the owners of prime office buildings and those with older, less attractive stock, according to Moody’s Investors Service. It expects high raw material and financing costs will weigh on building activity at least through this year, squeezing the supply of new office space. While this means more headwinds for developers and building materials firms, landlords of high-quality commercial properties will likely benefit from the shortage. On the other side, secondary stock will “underperform in terms ... (full story)