{"id":15292,"date":"2023-05-30T12:40:34","date_gmt":"2023-05-30T11:40:34","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=15292"},"modified":"2023-05-30T12:45:58","modified_gmt":"2023-05-30T11:45:58","slug":"commercial-property-market-review-may-2023","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2023\/05\/30\/commercial-property-market-review-may-2023\/","title":{"rendered":"Commercial Property Market Review \u2013 May 2023"},"content":{"rendered":"
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Spotlight on UK retail<\/strong> <\/p>\n<\/div>\n\n

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The recently released shopping centre and high street spotlight from Savills for Q1 has highlighted that although the UK retail investment market has faced challenges, <\/strong>the occupational market has remained buoyant.<\/strong> <\/p>\n<\/div>\n\n

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From a volume perspective, emphasising consumer cautiousness in the face of high inflation, retail sales declined 3.2% year on year in March, however a marginal 0.6% uptick was recorded in Q1, the first Q1 improvement since August 2021. <\/p>\n<\/div>\n\n

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Value retailers spearheaded the sector outperformers. Primark is one such success story, registering a 19% uplift in its half-year figures to March 2023, and Pepco, owner of Poundland recorded Q1 revenue growth of 8.5% year-on-year. Value pharmacy chain Superdrug plans to open 25 new stores this year and value clothing retailer Peacocks looks set to take over 20 recently closed M&Co stores.  <\/p>\n<\/div>\n\n

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Looking forward at retail consumer and occupational trends, the report lays out a brighter outlook, as improving consumer confidence and \u2018marginal deflation\u2019 <\/em>indicate \u2018healthier times for retail are imminent.\u2019 <\/em> <\/p>\n<\/div>\n\n

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Stabilising L&I investment volumes<\/strong> <\/p>\n<\/div>\n\n

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One of the key findings from Cushman Wakefield\u2019s UK Logistics and Industrial (L&I) National Outlook for Q1 has highlighted that although investment volumes have remained subdued, with just 53 transactions recorded during the period (versus 73 transactions in Q4 2022), sentiment has stabilised during Q1 with <\/strong>\u2018pockets of cautious optimism returning to the market amidst improvements in headline economic indicators.\u2019 <\/em><\/strong> <\/p>\n<\/div>\n\n

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Total investment volumes in the quarter fell to \u00a31.2bn, the lowest quarterly value recorded since Q2 2020, a result of \u2018sustained price discovery\u2019<\/em> in the sector, as the gap between purchaser and vendor aspirations narrows.  <\/p>\n<\/div>\n\n

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The repricing of UK L&I assets, following the economic turmoil of September\u2019s mini-budget and monetary policy tightening, is beginning to see results according to the report, and \u2018induce quiet optimism.\u2019 <\/em> <\/p>\n<\/div>\n\n

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Ed Cornwell, International Partner, Logistics & Industrial Cap Markets commented on the current state of investment volumes in L&I, \u201cThe sector\u2019s rapid repricing has begun to attract investors back to the market, resulting in a cautious improvement in sentiment. Pricing models continue to be subject to wider economic factors but changes to investment strategy and risk appetite are beginning to bed in as investors adjust.\u201d<\/em>  <\/p>\n<\/div>\n\n

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Grade-A office space reduces in Scotland <\/strong> <\/p>\n<\/div>\n\n

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Data from property services firm JLL has shown an increase in lease renewals in Glasgow and Edinburgh because of a lack of what it calls <\/strong>\u2018flexible, sustainable office space.\u2019<\/em><\/strong> <\/strong> <\/p>\n<\/div>\n\n

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In the capital, a combination of limited choice and economic uncertainty caused lease renewals to reach a record high of over 350,000 sq. ft last year, <\/strong>a trend continuing into 2023 with nearly 100,000 sq. ft of regears completing in Q1. And in Glasgow, a healthy Q1 take up of 60,000 sq. ft was accompanied by a further 35,000 sq. ft of lease renewals.  <\/p>\n<\/div>\n\n

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All details are correct at the time of writing (24 May 2023)<\/strong> <\/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":"

Spotlight on UK retail  The recently released shopping centre and high street spotlight from Savills for Q1 has highlighted that although the UK retail investment market has faced challenges, the occupational market has remained buoyant.  From a volume perspective, emphasising consumer cautiousness in the face of high inflation, retail sales declined 3.2% year on year […]<\/p>\n","protected":false},"author":4,"featured_media":15294,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,36],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/15292"}],"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\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=15292"}],"version-history":[{"count":4,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/15292\/revisions"}],"predecessor-version":[{"id":15304,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/15292\/revisions\/15304"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/15294"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=15292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=15292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=15292"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=15292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}