UK Commercial Property Update IPF Consensus Forecasts (May) The latest IPF Consensus Survey showed another upgrade to forecasts for total returns in 2023, driven by improvements to both the rental and capital value outlook. A better-than-expected start to the... 31st May 2023 · 3 mins read
UK Commercial Property Update Is industrial still dangerously overvalued? Substantial yield compression over the past two years meant that by the middle of 2022 industrial had become the most overvalued sector since our measure began in 1992. That helps explains the... 11th May 2023 · 3 mins read
UK Commercial Property Update Early yield correction gives retail an advantage A fall in consumption this year will weigh on the retail sector, but an earlier correction in yields and rents mean it is less vulnerable to the recession. Indeed, it was the only sector to see a fall... 24th April 2023 · 3 mins read
US Commercial Property Update Assessing the physical climate change risks to property The physical risks facing commercial property are substantial with extreme weather events like floods and wildfires set to increase in both the US and Europe over the coming decades. Property markets... 21st April 2023 · 7 mins read
UK Commercial Property Update A silver lining for hotels? Exhausted household savings and an upcoming recession is set to hit hotel demand over the next year or so. However, as happened in the aftermath of the GFC, some stretched households may decide to... 19th April 2023 · 3 mins read
UK Commercial Property Update Leisure sector to suffer as savings are exhausted Despite the cost-of-living crisis, the leisure sector did better than expected last year as households used the savings they had built up during the pandemic to boost spending on recreation and... 13th April 2023 · 3 mins read
UK Commercial Property Update London office capital values can’t deny gravity forever London office capital values fell by a relatively modest amount in the second half of last year and monthly data show values stabilised in the first two months of 2023. But that has left London office... 5th April 2023 · 3 mins read
UK Commercial Property Update How much of a risk does UK CRE debt pose? The UK commercial real estate (CRE) debt market seems to be in a better position than the US, where troubled regional banks were the main providers of finance. That said, credit conditions are also... 22nd March 2023 · 3 mins read
US Commercial Property Update Where does property fit into the banking turmoil? While real estate is not the main cause of the current financial turbulence, as it was in the late 2000s, it has played an indirect role and may be implicated in any further instability. And property... 21st March 2023 · 4 mins read
Global Economics Update What next after Credit Suisse? While the Credit Suisse rescue might draw a line under that particular institution’s problems, it is clear that confidence in the financial sector overall is still extremely fragile. So regardless of... 20th March 2023 · 5 mins read
Global Economics Update How could the situation escalate? We are resending this publication to include clients of our Property Services. We have already outlined some different scenarios of how things might evolve from here and it is still possible that the... 16th March 2023 · 4 mins read
UK Commercial Property Update Rental growth resilience won’t last Even as the economy has slowed nominal all-property rental growth has held up relatively well. But that largely reflects the impact of high inflation, which is now falling. In any event, underlying... 15th March 2023 · 3 mins read
UK Commercial Property Update Industrial pipeline not a major risk A record amount of industrial space is currently under construction, which looks poorly timed given the upcoming recession. However, the sector is entering the downturn in a strong position with very... 8th March 2023 · 4 mins read
Europe Commercial Property Update Property returns to revive over the longer term The current economic downturn will mean that short-to-medium term property performance is under-par. But over a longer horizon, we expect real estate returns to reassert their traditional position... 2nd March 2023 · 3 mins read
UK Commercial Property Update Is the worst behind us? This week’s data contained encouraging signs that inflationary pressures are fading, and the risks to our view that Bank Rate will rise to 4.5% this year now lie to the downside. The January MSCI data... 17th February 2023 · 3 mins read
UK Commercial Property Update Explaining the surge in yields The rise in yields in the final quarter of last year was larger than that seen at the start of the GFC. While the magnitude of the rise can be explained by the jump in risk-free interest rates, the... 3rd February 2023 · 3 mins read