{"id":8885,"date":"2022-10-27T12:59:18","date_gmt":"2022-10-27T11:59:18","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=8885"},"modified":"2022-10-27T13:26:09","modified_gmt":"2022-10-27T12:26:09","slug":"commercial-property-review-october-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/10\/27\/commercial-property-review-october-2022\/","title":{"rendered":"Commercial Property Review \u2013 October 2022"},"content":{"rendered":"
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Rising yields and flight to quality<\/strong><\/p>\n<\/div>\n\n

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Most commercial property yields rose in September,\naccording to the latest \u2018Market in Minutes: UK Commercial\u2019 report from Savills,\nleading to an average prime yield of 5.23%, compared to 4.95% the month before.<\/strong><\/p>\n<\/div>\n\n

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A total of seven sectors saw an upward trend in September\n2022, including shopping centres and leisure parks. Despite this, investment\nvolumes for the year to the end of Q3 remain about 3% below the same point in\n2021.<\/p>\n<\/div>\n\n

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Prime yields for offices rose too, though data for the\noffice sector remain mixed as occupiers try to work out how much space they\nneed in their next office acquisition. In the \u2018Big 6\u2019 office markets, for\nexample, companies moving to new premises over 10,000 sq. ft in 2021 and H1\n2022 required, on average, 8% less space than previously.<\/p>\n<\/div>\n\n

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Although some occupiers are reducing their office provision in\nresponse to hybrid working, many are prepared to pay higher rents for\nhigher-quality space. The number of transactions over \u00a335 per sq. ft have risen\nby 210% since 2019.<\/p>\n<\/div>\n\n

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Commenting on this trend, Stephen Lang, Director of\nCommercial Research at Savills said, \u201cWith the continuing flight-to-quality\nin the markets, occupiers taking smaller spaces are willing to pay higher rents\nfor a better office space.\u201d<\/em><\/p>\n<\/div>\n\n

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New lease of life for Battersea Power Station<\/strong><\/p>\n<\/div>\n\n

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Almost 40 years after it was decommissioned, Battersea\nPower Station has been transformed into a mixed-use development \u2013 costing \u00a39bn\nand taking eight years of labour.<\/strong><\/p>\n<\/div>\n\n

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The renovation, backed by a group of Malaysian investors,\nhas turned Battersea Power Station into offices, flats, shops and more.<\/p>\n<\/div>\n\n

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The famous Art Deco building, experts say, still retains\nmuch of its original character. The two turbine halls have become retail areas\nand the control rooms are now bars. 254 luxury apartments, restaurants and caf\u00e9s\nsit side-by-side with a theatre and event spaces.<\/p>\n<\/div>\n\n

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Most prominent, perhaps, is the boiler room, which has become\nan office space. Apple has taken 500,000 sq. ft of this across six floors, with\nroom for 3,000 employees.<\/p>\n<\/div>\n\n

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Overseas investors drive investment in Scotland<\/strong><\/p>\n<\/div>\n\n

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The declining value of the pound could see overseas\ninvestors\u2019 share of investment in Scottish commercial property reach record\nlevels, according to Knight Frank.<\/strong><\/p>\n<\/div>\n\n

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Q3 data showed that overseas investors are responsible for more\nthan half of current volumes, propelling a year-on-year rise of 37% in the year\nto September.<\/p>\n<\/div>\n\n

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Of the \u00a31.46bn invested so far in 2022, offices led the way,\nrepresenting more than a third (\u00a3486m) of total investment volumes. Industrial\nproperty, meanwhile, almost doubled to \u00a3300m, resurgent after its pandemic\nslump.<\/p>\n<\/div>\n\n

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Alasdair Steele, Head of Scotland Commercial at Knight Frank\nScotland, commented, \u201cThere has been a great deal of uncertainty this year,\nstarting with the complications of the ongoing pandemic, the conflict in\nUkraine, and rising inflation and interest rates; but Scotland\u2019s commercial\nproperty market has continued to fare well. This is particularly true for\nassets that are in high demand, namely prime offices and industrials.\u201d<\/em><\/p>\n<\/div>\n\n

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All details are correct at the time of writing (20 October 2022)<\/strong><\/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":"

Rising yields and flight to quality Most commercial property yields rose in September, according to the latest \u2018Market in Minutes: UK Commercial\u2019 report from Savills, leading to an average prime yield of 5.23%, compared to 4.95% the month before. A total of seven sectors saw an upward trend in September 2022, including shopping centres and […]<\/p>\n","protected":false},"author":12,"featured_media":8873,"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\/8885"}],"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=8885"}],"version-history":[{"count":3,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/8885\/revisions"}],"predecessor-version":[{"id":8888,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/8885\/revisions\/8888"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/8873"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=8885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=8885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=8885"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=8885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}