UK Commercial Property Update REIT pricing points to further fall in capital values Movements in REIT pricing provide a good indication of where property capital values are heading. And the latest data are consistent with our expectation that all-property values will see a peak-to... 18th January 2023 · 3 mins read
UK Commercial Property Update UK commercial property faces a tough year After a stellar first six months, rising interest rates and a slowing economy brought commercial property returns crashing down in the second half of 2022. All-property total returns are therefore set... 10th January 2023 · 3 mins read
Climate Economics Update The key battlegrounds for cutting property emissions A large part of the real estate sector’s carbon footprint is related to electricity production and so will shrink over time as the use of renewables continues to expand. The biggest challenges to... 9th January 2023 · 6 mins read
US Commercial Property Update The World in 2023: Property prices to plunge Property markets rebounded strongly after 2020, in part boosted by favourable structural shifts brought on by the pandemic. But they have hit the buffers in recent months. And fortunes are likely to... 15th December 2022 · 4 mins read
UK Commercial Property Update Regional office market rents to outperform London Office rental growth in London and RoUK was similar in the third quarter. But as the recession takes hold London firms will have a greater incentive, and opportunity, to make savings from the shift to... 14th December 2022 · 3 mins read
UK Commercial Property Update Lending to property will soon go into reverse The rise in net lending to real estate over the past couple of months may reflect some investors looking to buy commercial property assets at discounted prices. But a repeat of the mid-2000s, when... 9th December 2022 · 3 mins read
UK Commercial Property Update Retail property no longer an outlier The cost-of-living crisis will have an impact on UK high streets for much of the next year. That will not be helpful for retail property rents, although given they are starting from a low base, we... 18th November 2022 · 3 mins read
UK Commercial Property Update Rising vacancy will cut London office rents Even as Central London office vacancy rates rose to a 12-year peak in Q3, annual rental growth ticked-up to three-year high. That marks a reversal from the situation prior to COVID-19, when a tight... 15th November 2022 · 3 mins read
UK Commercial Property Update Global recession seals real estate downturn In line with changes in our global economic view, we have made significant downgrades to our commercial real estate forecasts for the next couple of years. As a result, we now expect a much bigger... 8th November 2022 · 3 mins read
UK Commercial Property Update Industrial set to underperform Industrial demand is relatively well-placed to weather the upcoming recession. Vacancy is low going into the downturn and the gradual shift to online shopping will continue. It should therefore be the... 26th October 2022 · 3 mins read
UK Housing Market Update Will property be a problem again? The UK property market has a long history of either causing or worsening recessions. But that history has taught both banks and regulators a lesson. So while higher debt payments, falling property... 19th October 2022 · 5 mins read
UK Commercial Property Update Offices see biggest fall in our rental downgrade With interest rates now higher, we have made downgrades to our forecast for UK GDP growth. We expect that this will bring a sharper deceleration in rental growth at the all-property level, with falls... 17th October 2022 · 3 mins read
Global Economics Update From inflation crisis to financial crisis? Problems at California-based lender Silicon Valley Bank (SVB) have refocussed attention on financial sector risks. In light of this, we are resending a report from last October that provides a... 11th October 2022 · 5 mins read
UK Commercial Property Update How concerning are property fund outflows? In response to a surge in withdrawals as pension funds rushed to secure cash to meet margin calls, several property funds implemented restrictions to prevent the need for a fire-sale of assets. To... 11th October 2022 · 3 mins read
UK Commercial Property Update Property capital values set to fall by 15% Looser-than-expected fiscal policy following the mini-Budget means we now expect Bank Rate and gilt yields to be higher. All else equal, that would push the spread between the 10-year yield and all... 4th October 2022 · 3 mins read
Europe Commercial Property Update Chinese tourism drought will add to luxury retail woes In view of the wider interest, we are also sending this Europe Commercial Property Update to clients of our UK Commercial Property Service. With no end in sight to China’s zero-COVID policy, the... 30th September 2022 · 3 mins read