UK Commercial Property Update Derivative prices and funds flows: more signs of an improved outlook Commercial property derivatives pricing continues to improve. Moreover, the net outflows from pooled property investment funds, which have characterised the past couple of years, appear to have gone... 7th August 2009 · 1 min read
UK Commercial Property Update Shopping centre rental values still set to outperform shops and warehouses Shopping centre rental values are currently underperforming the other main retail sub-sectors, but there remain good reasons why this is unlikely to continue. For example, history suggests that... 22nd July 2009 · 1 min read
UK Commercial Property Update Lease Events Review doesn’t alter big picture that income is less secure The latest Strutt & Parker (S&P)/IPD Lease Events Review made for mixed reading from a commercial property investor’s point of view. Regardless, the shorter term influences that it looks at are small... 13th July 2009 · 1 min read
UK Commercial Property Update Fewer consumer-related jobs points to further retail rental value falls Retail sales have outperformed non-retail sales during the recession to date. Were that outperformance to continue it could be argued that the prospects for retail rental values are brighter than... 8th July 2009 · 1 min read
UK Commercial Property Update Credit Conditions survey and PMI data don’t alter weak property outlook Today’s Credit Conditions survey from the Bank of England showed that the supply of mortgage finance appears to be slowly improving, but does not change our view that further price falls are very... 2nd July 2009 · 1 min read
UK Commercial Property Update CBI/PwC financial services survey provides little comfort for offices Monday’s CBI/PwC Financial Services Survey received a reasonable amount of media coverage due to the more upbeat tone of its results. At first glance, that might appear to suggest an imminent upturn... 1st July 2009 · 1 min read
UK Commercial Property Update Bank of England Financial Stability Report, June 2009 Property markets were not a key feature of the Bank of England’s latest Financial Stability Report (FSR). However, the focus of the report, on tighter regulation in future, adds to the case for... 26th June 2009 · 1 min read
UK Commercial Property Update Asset protection scheme unlikely materially to boost foreclosures It has recently been put to us by a few clients that, counter to the Government’s best intentions, the Asset Protection Scheme (APS) will actually encourage lenders to foreclose on existing commercial... 18th June 2009 · 1 min read
UK Commercial Property Update Economic forecast revisions: net effect on property is negligible Yesterday we revised up our economic forecasts. (See various Updates, available to clients on our website, for more details.) Although we still expect growth to remain weak, at the margin, the new... 9th June 2009 · 1 min read
UK Commercial Property Update Corporate bonds comparison suggests property not necessarily cheap Tenant default and loss of rental income are now perhaps the foremost concerns for commercial property investors. As such, it is far from clear that property is undervalued, even though yields are now... 8th June 2009 · 1 min read
UK Commercial Property Update If prime yields have peaked, how much more might the average rise? Anecdotal evidence that commercial property yields have peaked is steadily accumulating. To be sure, it is only a very narrow and select portion of the market in which yields are reported to have... 21st May 2009 · 1 min read
UK Commercial Property Update De Montfort Lending Review, full-year 2008 Broadly speaking, the De Montfort review for 2008 supports our long-held view that commercial property lending will remain weak for a prolonged period. The sanguine attitude of lenders towards... 15th May 2009 · 1 min read
UK Commercial Property Update Falls in London office development pipelines: an alternative view All else equal, the recent falls in office development pipelines in Central London would be positive for the outlook for rental values. However, take-up has fallen at an even faster rate, meaning that... 14th May 2009 · 1 min read
UK Commercial Property Update How significant is the upturn in commercial property sentiment? Sentiment towards commercial property has improved of late and some anecdotal evidence suggests that yields have stabilised. However, to date, the improvement in sentiment appears modest and the... 6th May 2009 · 1 min read
UK Commercial Property Update Does a fast start to the rental downturn imply a quicker recovery? To date, the recession has triggered a larger fall in commercial property rental values than past experience suggests is typical. The abrupt drop in financial and business services employment, with... 24th April 2009 · 1 min read
UK Commercial Property Update Property and the 2009 Budget - disappointment dominates This Budget was a holding operation which left the really tough decisions required to sort out the public finances to be taken by whoever is Chancellor after the next election. The tax increases and... 22nd April 2009 · 1 min read