UK Commercial Property Update How strong are the main regional office markets? In mid-2015, capital value growth in the Rest of the UK office market was roughly half that seen in the South East or London. Yet Manchester and Birmingham are delivering rather stronger rates of... 23rd September 2015 · 1 min read
UK Commercial Property Update Is the end of the City office rental upswing in sight? Experience suggests that shifts in demand, rather than supply, tend to act as the trigger for major rental value downturns. So, although the London office development pipeline has surged and is... 17th September 2015 · 1 min read
UK Commercial Property Update Tourism’s strength to support hotel values Visitor numbers to the UK recently reached record levels, an encouraging development for the UK hotel sector. But spending by overseas visitors was less buoyant, suggesting that prime retail and... 10th September 2015 · 1 min read
UK Commercial Property Update What does the slump in equities mean for property? Yesterday’s sharp falls in global equity markets and the value of UK real estate equities have not altered the outlook for the UK commercial property market over the next year or so. Commercial... 25th August 2015 · 1 min read
UK Commercial Property Update Should we worry about falling prime/non-prime yield spreads? The gap between prime and non-prime yields has fallen in seven of the past eight quarters and by roughly a third over that period. Yet there is little in this data to ring alarm bells. After all... 13th August 2015 · 1 min read
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
