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
UK Commercial Property Update Supermarkets one winner from cost-of-living crisis After reaching close to a record high at the start of 2021, the gap between supermarket and all-retail equivalent yields has since fallen back to its pre-COVID-19 level. That is likely to reflect the... 16th September 2022 · 3 mins read
UK Commercial Property Update Energy price cap worsens the property outlook By boosting real disposable incomes, the energy price cap will give some support to commercial rents, particularly in consumer-facing sectors such as leisure and retail. However, that benefit needs to... 14th September 2022 · 3 mins read
UK Commercial Property Update Boom in hybrid working to delay office demand impact Recent surveys suggest that our forecast that 50% of office employees will go into work every day is too high. But it also looks like the vast majority of those working from home will only do so part... 8th September 2022 · 3 mins read
UK Commercial Property Update Build to Rent will continue to thrive The latest figures suggest that Build to Rent (BTR) investment has continued to expand rapidly. Despite this trend, which predates COVID-19, the sector remains under-developed by international... 16th August 2022 · 3 mins read
US Commercial Property Update Global trends point to a more difficult decade ahead Commercial property wasn’t initially hit by the worsening in economic conditions at the turn of the year, but there are now growing signs of anxiety. Not only that, but even if the economic gloom is... 12th August 2022 · 3 mins read
UK Commercial Property Update Stretched consumers to cut back on leisure spending As the cost-of-living crisis bites consumers will be forced to cut back on discretionary spending, with the leisure sector set to suffer as a result. At the same time, operators are facing shortages... 2nd August 2022 · 3 mins read
UK Commercial Property Update Recession to weigh on the property outlook The latest revisions to our UK economic view indicate that a recession is now unavoidable. This will weigh on commercial property performance into next year, but the dip is expected to be fairly mild... 20th July 2022 · 3 mins read
UK Commercial Property Update Retail warehouses to remain aisle of choice Structural changes to how we live, work and shop have supported retail warehouse rents over the last couple of years relative to other retail sub-sectors. We expect this outperformance will continue... 13th July 2022 · 3 mins read
UK Commercial Property Update Fair value analysis suggests our forecasts are on-target The rise in interest rates and bond yields has put property yields back under the microscope. Property valuations are now stretched and a traditional fair value analysis points toward a rise in... 8th July 2022 · 3 mins read
UK Commercial Property Update Investment activity to fall as economic realities bite After a solid start to the year, investment activity showed signs of cooling during the second quarter. We think that stretched valuations, an increasingly negative financing gap and economic... 30th June 2022 · 3 mins read
UK Commercial Property Update Student accommodation rent growth to stay solid Student enrolment remained robust during the last couple of years and is likely to continue growing strongly over the next decade. But supply of purpose-built beds has grown less rapidly and the... 24th June 2022 · 3 mins read
UK Commercial Property Update Will Manchester office rental growth outperform again? After a more severe downturn in 2020, Manchester office rental growth has caught up with other regional cities in recent quarters. While employment growth and occupier activity may remain fairly weak... 17th June 2022 · 3 mins read
Europe Commercial Property Update Will property resist the effects of deglobalisation? A recent MSCI article speculated that real estate investment could buck the deglobalisation trend given distinct features of the asset class, though we are not convinced that will bring many benefits... 14th June 2022 · 3 mins read
