UK Commercial Property Update How much upside is there for distribution rental values? Distribution warehouse rental value growth hit 2.9%y/y in Q2, a 15-year high. But with output in the distribution sector growing at above-average rates and real rental values more than 10% below a... 6th August 2015 · 1 min read
UK Commercial Property Update Greater scope for prime office yields to narrow in Munich than London The spread between government bond yields in Germany and the UK is less indicative of the relative strength of the two countries’ economic outlooks than it was in the past. As such, in contrast to... 29th July 2015 · 1 min read
UK Commercial Property Update Are shopping centres the weak link in the retail rental recovery? Shopping centre rental values have yet to find a floor. But with rental values for in-town centres still struggling, while out-of-town rents appear to be staging a recovery, the data are most useful... 20th July 2015 · 1 min read
UK Commercial Property Update Will UK commercial property perform as strongly in H2? As we move into the second half of the year, it seems a good time to review our 2015 forecasts and to assess whether they could yet be knocked off track by the ongoing saga in Greece. Fortunately... 6th July 2015 · 1 min read
UK Commercial Property Update Will excess supply curtail the industrial rental recovery? Development activity in the industrial property sector has picked up sharply over the past year or so in response to a doubling in the pace of industrial rental value growth. But with the economy set... 25th June 2015 · 1 min read
UK Commercial Property Update What would stronger productivity mean for rental values? For a given rate of economic growth, boosting productivity requires a slower rate of job creation, which in turn will tend to moderate the rate of rental value growth. Over the medium term, however... 18th June 2015 · 1 min read
UK Commercial Property Update South East offices poised for further outperformance Taking 2015 to 2017 as a whole, further yield compression combined with steady growth in rental values should mean that South East offices deliver stronger capital value growth and average total... 9th June 2015 · 1 min read
UK Commercial Property Update What does the surge in leisure spending mean for property? The surge in leisure services spending shown in the latest data is not as positive for the broader leisure sector as it first appears. Nevertheless, after tracking sideways for the past six years, the... 5th June 2015 · 1 min read
UK Commercial Property Update De Montfort Survey confirms cautious attitude to development The De Montfort University Lending Survey confirms anecdotal reports of an increasingly buoyant and competitive commercial property lending market. But it also suggests that lenders’ risk appetite is... 22nd May 2015 · 1 min read
UK Commercial Property Update London offices - headed for a period of excess supply? Schemes aiming to deliver a total of 4.4m square feet of new office space to Central London were launched in the past six months. That was the second highest level of development starts in 20 years... 21st May 2015 · 1 min read
UK Commercial Property Update Is industrial property now overvalued? The record low spread between industrial yields and the all-property average is not a sign that industrial property is too expensive. Rather it largely reflects the fact that retail yields are still... 22nd April 2015 · 1 min read
UK Commercial Property Update Will the stronger pound undermine hotel returns? For many Europeans, the cost of visiting the UK has jumped by almost 20% over the past 18 months and almost 10% since Christmas. Yet the evidence shows that currency shifts have a negligible impact on... 19th March 2015 · 1 min read
UK Commercial Property Update Are we underestimating the outlook for high street rents? Experience suggests that the recent upturn in consumer confidence and retail sales could drive a rapid recovery in high street rental values over the next year. But given the huge supply overhang in... 12th March 2015 · 1 min read
UK Commercial Property Update Have Central London retail yields hit a floor? While yields in most of the UK property market fell further in the final stages of last year, yields for Central London shops edged up. However, they are already exceptionally low relative to their... 12th February 2015 · 1 min read
UK Commercial Property Update Will property returns surprise on the upside again this year? At 19.3% IPD all-property returns for 2014 were roughly double the consensus forecast made in late 2013. Both we and the consensus expect returns to moderate, to around 10% this year, as the pace of... 5th February 2015 · 1 min read
UK Commercial Property Update Is rental growth reaching a peak? The latest sharp drop in the pace of job creation was driven largely by a drop in self-employment. And given that total hours worked and the number of vacancies all continued to rise at a healthy pace... 22nd January 2015 · 1 min read
