National Investment Market Overview
Supermarkets
Overview
It has been another interesting quarter for supermarket deals with a number of food store investments continuing to transact. Whilst the amount of new stock coming to the market fell compared to Q4 2023 the amount of stock available and going under offer at the back end of last year meant a number of deals fell into the new year.
Retail Warehousing
Overview and Q1 Review
- In Q1 we saw increased positivity in sentiment which is creating a strong platform for the remainder of the year.
- Lack of supply is a continuing theme but deals which have been available from last year have now generally been completed on or put under offer in the first quarter.
- Deals which have happened in Q1 have now created good transactional evidence for the market.
- The smaller lot sized are also holding up with a wider buying pool of private money, smaller funds and property companies still being active.
Industrial
Overview and Q4 Review
The industrial market is experiencing a period of improving optimism through the first half of 2024. Sentiment within the sector is on an upswing, bolstered by expectations of base rate cuts throughout the year. This anticipation of a more accommodative monetary environment is infusing the market with renewed confidence and sets a promising backdrop for the sector's performance in the coming months.
Retail
Overview and Q1 Review
Since the start of the year the number of high street retail assets coming to the market has gradually increased and we are slowly starting to see more activity in the sector. As trading conditions for retailers and profit margins remain challenging investors continue to place a strong focus on the location of a property and the sustainability of rents.
The occupational story is mixed, the news headlines have focussed on a number of well know administrations including The Body Shop (closing 75 stores but keeping 116 UK stores open) and Ted Baker (closing 15 of the company’s 86 UK stores) but the news is not all bad; national retailers including Sports Direct and Primark are planning expansion with the latter looking to invest more than £100M in it’s UK stores which includes £75M of new investment in UK retail this year.
Offices
Economic Overview
The first quarter of 2024 has seen a continuation of the cautiously optimistic sentiment that closed out the previous year. The Bank of England's decision to maintain base rates at 5.25% has been interpreted by market participants as a precursor to potential rate cuts at the end of Q2 2024. This anticipation has contributed to a steadily improving market sentiment, with vendor and purchaser aspirations becoming more aligned, resulting in stock trading, rather than sitting available in the market.