{"id":10138,"date":"2022-12-29T12:55:32","date_gmt":"2022-12-29T12:55:32","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/12\/29\/commercial-property-market-review-december-2022\/"},"modified":"2022-12-29T13:04:45","modified_gmt":"2022-12-29T13:04:45","slug":"commercial-property-market-review-december-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/12\/29\/commercial-property-market-review-december-2022\/","title":{"rendered":"Commercial Property Market Review – December 2022"},"content":{"rendered":"
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Stability and optimism for commercial property<\/u><\/strong><\/p>\n<\/div>\n\n

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Average prime yields stabilised in November, according to the latest Market in Minutes report from Savills, which also pointed to an optimistic outlook for 2023.<\/strong><\/p>\n<\/div>\n\n

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The number of sectors seeing rising yields halved in a month, the report noted, though some sectors, including shopping centres and City of London offices are still predicted to see some outward yield shifts.<\/p>\n<\/div>\n\n

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Commercial investment volumes moved above \u00a350bn in November, a milestone that leaves volumes only 7% below the annual total achieved in 2019. The investment market has surprised on the upside since the middle of 2022; the alternative sector, was largely to thank, making up over a third of this investment.<\/p>\n<\/div>\n\n

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The report\u2019s optimism stems, in part from the finding that four of the \u2018Big Six\u2019 markets are projected to achieve rental growth next year. Bristol, Birmingham and Manchester will all have prime rents in excess of \u00a340 per sq. ft by the end of 2023, Savills suggests.<\/p>\n<\/div>\n\n

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Slowdown in Scotland<\/u><\/strong><\/p>\n<\/div>\n\n

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Scottish commercial property saw a dramatic slowdown in Q3 2022, according to Colliers, with investment plunging to just \u00a3200m.<\/strong><\/p>\n<\/div>\n\n

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The retail sector saw a total of \u00a370m invested, while office investment volumes fell to just \u00a340m, the weakest quarterly figure since Q2 2020. The industrial sector also experienced a slowdown, with just \u00a320m transacted across three deals.<\/p>\n<\/div>\n\n

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Despite the lacklustre quarter, however, the report notes that investment volumes for the year are now \u00a31.7bn, 15% ahead of the corresponding 2021 figure.<\/p>\n<\/div>\n\n

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Oliver Kolodseike, Research Director at Colliers, commented, \u201cScotland isn\u2019t immune to the wider economic challenges that are sweeping the UK and as such, we are seeing the Scottish commercial property market find itself in the middle of a re-pricing.\u201d<\/em><\/em><\/p>\n<\/div>\n\n

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\u2018Once in a generation moment\u2019<\/em> for Oxford Street<\/u><\/strong><\/p>\n<\/div>\n\n

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The diversification of Oxford Street will be a \u2018generational change\u2019, according to Savills, with 1.32m sq. ft of new office schemes proposed for delivery in the next five years.<\/strong><\/p>\n<\/div>\n\n

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The conversion of former retail space into offices is expected to account for 960,000 sq. ft of the new office space. Key schemes currently include Sirosa\u2019s 163,000 sq. ft at Emporium, previously a House of Fraser store, and an 80,000 sq. ft conversion of a former Next store at The Ribbon, due to be delivered by M&G in 2024.<\/p>\n<\/div>\n\n

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The strong amenity and cultural offerings are big draws for Oxford Street, the report notes, as is its accessibility, which was further boosted this year by the opening of the new Bond Street Elizabeth Line station.<\/p>\n<\/div>\n\n

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Andrew Wedderspoon, Director in the West End office agency team at Savills, commented, \u201cWhile the area has been hard to imagine as a genuine office sub-market until now, the sheer volume of space available for conversion is a once in a generation moment to transform the street and attract those larger occupiers who may otherwise be pushed out of the West End due to a lack of opportunity.\u201d<\/em><\/p>\n<\/div>\n\n

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It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Stability and optimism for commercial property Average prime yields stabilised in November, according to the latest Market in Minutes report from Savills, which also pointed to an optimistic outlook for 2023. The number of sectors seeing rising yields halved in a month, the report noted, though some sectors, including shopping centres and City of London […]<\/p>\n","protected":false},"author":12,"featured_media":10102,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,36],"tags":[],"hd_content_source":[116],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/10138"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=10138"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/10138\/revisions"}],"predecessor-version":[{"id":10141,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/10138\/revisions\/10141"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/10102"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=10138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=10138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=10138"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=10138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}