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
UK Commercial Property Update Few signs of a slowdown in the London office market Today’s CBI/PWC financial services sector survey appears to contain mixed messages for the Central London office markets. But any adverse impact on occupier demand from the drop in employment and... 19th January 2015 · 1 min read
UK Commercial Property Update Are supermarket property values headed for a dip? Confirmation that the major supermarket chains are actively trimming their current and planned property portfolios supports our view that the sector will underperform for some years yet. But it also... 8th January 2015 · 1 min read
UK Commercial Property Update Is the plateau in deals signalling a peak for capital value growth? Property transactions seem to have hit a plateau, supporting our view that we may be very close to the peak for capital value growth. What’s more, the share of deals accounted for by overseas buyers... 10th December 2014 · 1 min read
UK Commercial Property Update How good is the outlook for non-prime regional office rents? Rental growth for non-prime regional offices is building up a nice head of steam, reflecting strong occupier demand and falling availability. Admittedly, a rise in the supply of new space next year... 19th November 2014 · 1 min read
UK Commercial Property Update Lease lengths no longer a major factor for investors There was little in today’s IPD/BPF/ Strutt & Parker Lease Events Review that should be of undue concern to commercial property investors. Indeed, perhaps the most noteworthy aspect of the report was... 13th November 2014 · 1 min read
UK Commercial Property Update What do recent data tell us about short-term prospects? A range of recent data supports our forecast that commercial property capital values will continue to rise next year. Indeed, even if modestly higher interest rates in 2015 do start to push up... 30th October 2014 · 1 min read
UK Commercial Property Update Are Rest of UK office rents poised to accelerate? History shows that upswings in London and South East office rents tend to filter out pretty quickly to the rest of the country. And with the economic recovery entrenched and regional office-based jobs... 16th October 2014 · 1 min read
UK Commercial Property Update More evidence that London office rents have further to rise The results of the latest CBI/PwC Financial Services survey were positive for the commercial property market. Business activity is improving steadily and the survey suggests that Central London office... 6th October 2014 · 1 min read
UK Commercial Property Update Is this the high-water mark for the upturn? Investment market activity has recently hit record levels and the strong, yield-driven capital gains have continued. However, our sense is that yields now need to pause, giving time for the underlying... 24th September 2014 · 1 min read
UK Commercial Property Update Would a raised development pipeline knock London office rents? In mid-2010, the Central London office development pipeline underestimated eventual completions by about 25%. A repeat of that over the next few years is certainly plausible. But even if City and West... 11th September 2014 · 1 min read
UK Commercial Property Update Outlook for leisure property returns is positive The current spread between leisure yields and the all-property average is higher than normal. Combined with decent rental growth prospects, this apparent scope for leisure yields to fall suggests that... 10th September 2014 · 1 min read
