UK Commercial Property Update Outlook for Central London office rents in 2011 now less positive Central London office rents will rise further. However, the revival of the medium-term development pipeline should ease occupiers’ fears about being stuck in unsuitable premises. Together with the... 28th October 2010 · 1 min read
UK Commercial Property Update Industrial rental values likely to fall further The dataflow on the industrial sector of the economy generally remains a little patchy but the CBI’s employment intentions balance nevertheless still points to a strong rebound in industrial property... 19th October 2010 · 1 min read
UK Commercial Property Update Low supply unlikely to lead to surge in shopping centre rents New shopping centre completions are likely to remain low over the next 12 to 15 months. As in the London office markets, this could lead to a spike in prime rents as occupiers compete to secure a... 12th October 2010 · 1 min read
UK Commercial Property Update Treat negative tone of property derivatives pricing with care The prospects for commercial property returns, while not without downside risks, are better than current derivatives pricing implies. The key problem here is that landlords, i.e. “producers” of... 5th October 2010 · 1 min read
UK Commercial Property Update Financial services recovery continues; office rental outlook solid Today’s CBI/PwC Financial Services Survey suggested that, in Q3 2010, output in this sector of the economy rose for the fifth consecutive quarter. A composite measure of some of the main survey... 27th September 2010 · 1 min read
UK Commercial Property Update Vacant space to weigh on industrial rents for some time to come The industrial sector of the economy has recorded decent growth in recent quarters but the outlook for GDP, ultimately the key influence on demand for industrial property, remains weak. And with the... 23rd September 2010 · 1 min read
UK Commercial Property Update Effective City office rental values to continue to outperform Headline IPD City office rental values fell by less than the West End during the 2008/09 downturn. But effective rents in the City market actually fared much worse. Since the end of 2009, however... 9th September 2010 · 1 min read
UK Commercial Property Update Will regional office markets follow London’s lead in 2011? Notwithstanding some less encouraging recent news (e.g. yesterday’s reports of looming job cuts at Barclays Capital), London’s City and West End office occupier markets are in recovery mode. Past... 12th August 2010 · 1 min read
UK Commercial Property Update Fading sentiment signals an end to capital value gains It is pretty clear that property investors’ sentiment has cooled in recent weeks. Accordingly there seems to be little scope for further gains in capital values. But with bond yields likely to stay... 2nd August 2010 · 1 min read
UK Commercial Property Update Short-term prospects for industrial rents still subdued Forward-looking indicators of industrial production have cooled a little, though there are some better signs for employment in this sector. The latter suggests that the floor for industrial rental... 21st July 2010 · 1 min read
UK Commercial Property Update Scope for fresh employment falls highlights muted rental prospects The more positive tone of yesterday’s labour market data was encouraging for commercial property rental values, which we still expect to find a floor later this year. However, with public sector job... 15th July 2010 · 1 min read
UK Commercial Property Update Income security holds up, but weak economy is a lingering threat With the economy in recession for much of 2009, the latest data from Strutt & Parker and IPD suggest that landlords fared reasonably well last year, retaining a high proportion of tenants and in many... 6th July 2010 · 1 min read
UK Commercial Property Update Property debt still a significant risk to UK financial system The Financial Stability Report (FSR) is not designed to lay out the Bank of England’s expectations for the financial system, economy or property markets. But there was enough in today’s report to... 25th June 2010 · 1 min read
UK Commercial Property Update How important are currency shifts to investment demand? The time series data on cross-border commercial property investment flows have a short history. But, not surprisingly in our view, they suggest that exchange rates are a far less important influence... 18th June 2010 · 1 min read
UK Commercial Property Update CMBS may be less of a problem than is feared The downside risks to property prices from failed refinancing of commercial mortgage-backed securities (CMBS) could linger for much of this decade. Over the next one to two years, however, relatively... 14th June 2010 · 1 min read
UK Commercial Property Update Retail may lag behind as investors shift to non-prime property Past experience suggests that the current trend for investors to target the income generating qualities of the best secondary stock is a comparatively low-risk strategy. Yet, even leaving aside any... 10th June 2010 · 1 min read