{"id":4737,"date":"2022-02-22T10:40:36","date_gmt":"2022-02-22T10:40:36","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=4737"},"modified":"2022-02-22T10:41:25","modified_gmt":"2022-02-22T10:41:25","slug":"commercial-property-market-review-february-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/02\/22\/commercial-property-market-review-february-2022\/","title":{"rendered":"Commercial Property Market Review \u2013 February 2022"},"content":{"rendered":"
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Upbeat mood for regional office\nactivity<\/strong><\/p>\n<\/div>\n\n

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The regional\noffice investment market remains upbeat, according to the latest quarterly\nupdate from Avison Young, after office demand across the \u2018Big Nine\u2019 returned to\n\u2018normal\u2019 <\/em>activity in H2 2021.<\/strong><\/p>\n<\/div>\n\n

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A strong second\nhalf brought the year\u2019s total take-up across the Big Nine cities to 8.1 million\nsq. ft, only 5% below the ten-year average. Volumes for the Big Nine office\nmarkets, meanwhile, recovered to \u00a32.6bn, 8% above the ten-year average.\nAlthough the total number of deals slowed in Q4 2021, NatWest acquired One\nHardman Boulevard in Manchester for \u00a3292m, the largest deal of the year.<\/p>\n<\/div>\n\n

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Prime yields for\nmost cities were unchanged in the final quarter, with an average of 5.36%. The\nMSCI quarterly index did, however, show the yield gap between prime and\nsecondary property widening, highlighting a shift towards the best quality\nassets.<\/p>\n<\/div>\n\n

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Mark Williams, Principal and Managing Director of Regional Investment at\nAvison Young commented,\n\u201cWell-located, good quality\nassets with a strong tenant base continue to receive good levels of interest,\nparticularly those that meet net zero carbon investment criteria and fulfil\nexpectations for positive rental growth.\u201d<\/em><\/p>\n<\/div>\n\n

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Rosy\npicture for investment expectations<\/strong><\/p>\n<\/div>\n\n

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UK real estate professionals reported positive investment trend\nmovements during Q4, in line with a global uplift in sentiment observed in the\nlatest Royal Institution of Chartered Surveyors (RICS) Global Commercial\nProperty Monitor (GCPM).<\/strong><\/p>\n<\/div>\n\n

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The GCPM showed UK capital value\nexpectations for the next year rising across all sectors. Top of the list is\nthe industrial sector; a net balance of +84% of respondents expect prime\nindustrial values to increase.<\/p>\n<\/div>\n\n

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Prime office value expectations also\nrose, with a net balance of +24% anticipating an increase. With work-from-home\nrestrictions now lifted, two-thirds of respondents believe an office is still\nessential to successful operations. At the same time, 76% of contributors noted\nrising demand for flexible and local workspaces.<\/p>\n<\/div>\n\n

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Tarrant Parsons, RICS Economist,\ncommented, \u201cStrength across the UK industrial\/logistics market shows no sign\nof abating, with capital value expectations for the year ahead posting a fresh\nall-time high across the sector during Q4\u2026 sentiment appears to have largely\nweathered the uncertainty brought on by the rapid spread of the Omicron variant\nin recent weeks.\u201d<\/em><\/p>\n<\/div>\n\n

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Industrials and\nretail warehousing are star Scottish performers<\/strong><\/p>\n<\/div>\n\n

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Industrial\nproperty and retail warehousing have surpassed offices in annual volumes for\nthe first time since 2011, with combined investments of \u00a3541m, figures released\nby Knight Frank have revealed.<\/strong><\/p>\n<\/div>\n\n

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The pair\ncontributed nearly a third of the year\u2019s total investments, a 45% increase on \u00a3374m\nin 2020. Overall, investments in Scottish commercial property reached \u00a31.7bn in\n2021, above the \u00a31.4bn recorded in 2020. Glasgow led the way with \u00a3475m, ahead\nof Edinburgh (\u00a3429m) and Aberdeen (\u00a354m).<\/p>\n<\/div>\n\n

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Knight Frank\u2019s Alasdair Steele highlighted the \u201calmost insatiable appetite for retail warehousing and industrial property driven by changes to people\u2019s shopping habits\u201d<\/em>, adding that this \u201conly looks likely to continue in 2022.\u201d<\/em><\/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":"

Upbeat mood for regional office activity The regional office investment market remains upbeat, according to the latest quarterly update from Avison Young, after office demand across the \u2018Big Nine\u2019 returned to \u2018normal\u2019 activity in H2 2021. A strong second half brought the year\u2019s total take-up across the Big Nine cities to 8.1 million sq. ft, […]<\/p>\n","protected":false},"author":12,"featured_media":4732,"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\/4737"}],"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=4737"}],"version-history":[{"count":4,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/4737\/revisions"}],"predecessor-version":[{"id":4741,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/4737\/revisions\/4741"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/4732"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=4737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=4737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=4737"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=4737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}