National Investment Market Overview
Offices
Overview
Despite the ongoing challenges within the office sector, we have seen the market become the most active sector of late with a flurry of transactions and new stock to the market. The two-tier market remains present, albeit we are now starting to see greater activity in the short income stock as investors start to bet on future relaxation of Permitted Development Rights allowing for more creative solutions to drive value.
Supermarkets
Overview
Following a flurry of deals in Q1/Q2, transactions have slowed over the summer. However, levels of stock coming to the market in Q3 have increased - these include a portfolio of Waitrose sale and leasebacks of circa £140M, a Lothbury portfolio of 4 supermarkets at circa £216M and individual sales of all of the big 4.
Retail Warehousing
Overview
We have continued to see a limited number of retail parks transact over the last quarter. There has been a limited amount of stock coming to the market with subdued activity from both buyers and sellers. The most active end of the market has been the primer end with schemes located in strong major cities or the south east being sought after by UK institutions who are seeing a discount in the current market to historic longer term pricing.
Industrial
Overview
After a turbulent twelve months it is hardly as if the industrial market has rebounded but has at the very least steadied. The pricing correction by and large has settled, fuelling an improvement in sentiment and a suggestion of increased transaction activity emerging. As a result of this year’s slowdown, occupational take up fell by 41% year-on-year and has now reverted back to its pre-pandemic levels, after the Covid-induced boom. Decision-making processes within businesses are taking much longer and the growth in online retail sales has fallen back to its pre-pandemic trend.
Retail
Overview
Interest rates have been the property industry’s buzzword for the last couple of years and it is sensible to assume that this will be the case going forward for the foreseeable. But, the tide has changed. Investors’ consensus now is that the UK has hit the peak and the rates are expected to plateau which should reinstate confidence and stability in the UK investment market generally.