{"id":3740,"date":"2021-12-22T15:14:22","date_gmt":"2021-12-22T15:14:22","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=3740"},"modified":"2022-07-05T13:33:45","modified_gmt":"2022-07-05T12:33:45","slug":"property-market-review-december-2021","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2021\/12\/22\/property-market-review-december-2021\/","title":{"rendered":"Commercial Property Market Review – December 2021"},"content":{"rendered":"
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Strong performance from retail parks<\/strong><\/p>\n<\/div>\n\n

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Retail parks remain the shining light of the retail\nindustry, with their yields across Europe now at parity with shopping centre\nyields, according to Savills\u2019 data.<\/strong><\/p>\n<\/div>\n\n

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So far in 2021, more than \u20ac5.1bn has been invested in retail\nparks across nine European countries. Investment was up 46% year-on-year in the\nthird quarter and the average retail park yield is now 5.43% \u2013 identical to the\naverage shopping centre yield for the first time.<\/p>\n<\/div>\n\n

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During the pandemic, out-of-town retail parks were hit less\nseverely than high street shops thanks to increased suburban home moves and\nlower footfall in city centres. Retail parks\u2019 compatibility with e-commerce\nfunctions such asclick-and-collect orders, customer returns and home\ndeliveries, as well as greater investor focus on value and convenience, make\nthem an attractive investment.<\/p>\n<\/div>\n\n

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Leila Packett of Savills commented, \u201cInvestors looking to\nmeet higher return thresholds while managing income risk have discerned that\nretail parks are often located close to population centres [and] anchored by\ntenants with a strong covenant\u2026 We\u2019ve seen a sharpening in prices throughout\n2021, and we expect this to continue in 2022.\u201d<\/em><\/p>\n<\/div>\n\n

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Repurposed department stores promise more vibrant high\nstreets<\/strong><\/p>\n<\/div>\n\n

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More than 75% of high street department stores are now\noccupied or awaiting planning applications, according to a new report by Nexus\nPlanning, a promising sign for the UK\u2019s high streets.<\/strong><\/p>\n<\/div>\n\n

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Many previously vacant stores are being redeveloped into\nretail buildings (62%), leisure or office spaces (19.7%), or mixed-use\ndevelopments combining retail and leisure. Indeed, 55% of department stores\nclosed since 2015 have since undergone redevelopment or have plans to do so.<\/p>\n<\/div>\n\n

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In Scotland, just under half of department stores trading in\n2015 are still operating. One potential location picked out for redevelopment\nis Princes Street in Edinburgh, which developers see as a major opportunity for\ndiverse regeneration.<\/p>\n<\/div>\n\n

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Rob Pearson, Executive Director at Nexus Planning,\ncommented, \u201cWe are amidst a housing crisis and in many cases these large\nbrownfield department store sites represent excellent opportunities for\nhigh-density development\u2026 we\u2019ve been preoccupied with shop closures, but business\nis incredibly resilient to change, and for every well-heralded story of a BHS\nor Debenhams closing, there are a multitude of examples of the green shoots of\nrecovery.\u201d<\/em><\/p>\n<\/div>\n\n

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Industrial and logistics smashing records<\/strong><\/p>\n<\/div>\n\n

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Capital deployed into the UK industrial and logistics\nmarket soared to \u00a310.8bn by the end of Q3, according to data from Savills.<\/strong><\/p>\n<\/div>\n\n

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As demand for logistics and distribution space intensifies,\ninvestors continue to pump more money into the sector; having already surpassed\nthe \u00a310.2bn spent in the whole of 2020, investment and take-up activity in Q4\nis showing little sign of slowing down.<\/p>\n<\/div>\n\n

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However, this rapid acceleration could put more pressure on supply. The rapid acceleration of e-commerce during the pandemic has already contributed to shortages in some markets. Indeed, three in 10 respondents to the fifth annual Industrial and Logistics Census cited the lack of supply of new buildings as the biggest challenge facing the sector, up from 18% in 2020.<\/p>\n<\/div>\n\n

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

Strong performance from retail parks Retail parks remain the shining light of the retail industry, with their yields across Europe now at parity with shopping centre yields, according to Savills\u2019 data. So far in 2021, more than \u20ac5.1bn has been invested in retail parks across nine European countries. Investment was up 46% year-on-year in the […]<\/p>\n","protected":false},"author":12,"featured_media":3742,"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\/3740"}],"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=3740"}],"version-history":[{"count":2,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/3740\/revisions"}],"predecessor-version":[{"id":6645,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/3740\/revisions\/6645"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/3742"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=3740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=3740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=3740"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=3740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}