Supermarket recovery delayed, but still imminent

Supermarkets struggled in 2023, as falling food sales volumes hit profits and rental growth. But the future looks brighter. As food price inflation has fallen supermarket profits have recovered and the past surge in food sales values points to stronger rental growth ahead. Coupled with a stabilisation in yields that means total returns will average over 8% p.a. over 2024-28, one of the best performing subsectors.  

Our team have recorded a special podcast episode all about the big themes in commercial real estate. The 12-minute episode showcases our enhanced coverage which provides a more global, comparative view of how the key markets we forecast are performing, touching on issues such as the question of growing distressed assets but also whether political uncertainty on both sides of the Atlantic is affecting sentiment and activity.