UK Commercial Property Update Hotels should remain comparatively resilient According to IPD, hotels are one of the few segments where capital values are at or above their levels a year ago. The continued euro-zone crisis will remain a strong headwind for hotels, but we... 15th August 2012 · 1 min read
UK Commercial Property Update South East offices could be a segment to watch Given that the economic backdrop is still so weak, it remains difficult to see a trigger for a widespread commercial property recovery in the near term. But the South East office market has shown... 10th August 2012 · 1 min read
UK Commercial Property Update Non-prime and prime yield divergence continues in Q2 The latest IPD data confirmed that yields on the best quality property have remained resilient in the face of renewed recession, but also that lower-grade stock continues to lose value. With both... 7th August 2012 · 1 min read
UK Commercial Property Update Rumoured RPI changes not a reason for concern Rumoured changes to the way in which the RPI is calculated may have a detrimental impact on the value of property with an index-linked lease. But even if any changes to the RPI are made, which is very... 18th July 2012 · 1 min read
UK Commercial Property Update H1 is done and capital values on track for full-year decline of 6% In the first six months of 2012, all-property rental values have been surprisingly resilient to renewed recession, but the upward trend in yields that we had expected has become reality. On top of the... 17th July 2012 · 1 min read
UK Commercial Property Update Do commercial property yields have further to rise? Simple calculations suggest that the rate of future rental growth implied by prevailing property yields is too low, or, in other words, that yields themselves may already have risen far enough. But... 10th July 2012 · 1 min read
UK Commercial Property Update Further evidence that London office rents will rise this year A composite indicator that aggregates up a range of individual balances from the CBI/PwC Financial Services survey points to continued, albeit modest growth in Central London office rents in H2. This... 29th June 2012 · 1 min read
UK Commercial Property Update West End office to residential conversions – too good to last? Strong interest in Central London office to residential conversions is not hard to understand, given that prime house prices command a substantial premium over office usage. But that premium looks... 15th June 2012 · 1 min read
UK Commercial Property Update How concerning are continued disposals by institutions? Property Archive’s data showed that, while overall commercial property investment market activity was solid in May, UK-based institutions were again net sellers. Historically, net disposals by... 12th June 2012 · 1 min read
UK Commercial Property Update IPF Consensus Forecasts (Q2) The latest IPF Consensus forecasts were little changed from February’s survey. Capital values are expected to drop by 4% to 5% this year. To our minds, however, the consensus is still a little too... 25th May 2012 · 1 min read
UK Commercial Property Update The pace of deleveraging may pick up even further Not surprisingly, the latest De Montfort survey highlights lenders’ increased concern about the impact of the euro-zone’s plight on UK commercial property. But given the survey relates to 2011, this... 18th May 2012 · 1 min read
UK Commercial Property Update Have non-prime yields passed their trough? For the first time since mid-2009, IPD reported that in Q1 2012 yields on lower quality commercial property increased. Not least because of higher distressed loan work-outs, we would be very surprised... 10th May 2012 · 1 min read
UK Commercial Property Update How is the London office development pipeline holding up? In recent quarters, Central London office vacancy rates have edged higher and the amount of space under construction and set for completion over 2012-13 has risen. This is despite the lack of pre-lets... 4th May 2012 · 1 min read
UK Commercial Property Update Relocations are another downside risk to West End office rents Media reports suggest that high West End office rents have begun to push some tenants out of the area. To be fair, evidence that high relative rents cause widespread relocations across the capital’s... 19th April 2012 · 1 min read
UK Commercial Property Update Can stronger industrial occupier market conditions last? Occupier demand for industrial property increased in Q1 and, given its low starting point, further gains in the near term can’t be ruled out. But the medium-term prospects for the manufacturing and... 17th April 2012 · 1 min read
UK Commercial Property Update Rental values - are comparisons with the 1990s relevant? The stagnation of commercial property rents over the past two years is similar to the experience of the mid-1990s. But while the earlier episode laid the foundations for a sustained recovery, a repeat... 11th April 2012 · 1 min read
