X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-Declining retailer confidence has hit demand for out-of-town retail space, according to the latest quarterly bulletin from FPD Savills. Accordingly the rate of rental growth has slowed from 5% per annum at the beginning of the year to 2.3% at the end of September 2001. And investors have reacted to this poorer performance by pushing out yields over the last quarter to 7.7% on solus units, and 6.8% on retail parks,

But the agent said there are some marked regional variations in performance. For example, the Midlands, where there is a higher proportion of parks with unrestricted planning consents allowing all classes of retailers to trade, rental growth has been stronger.

Simon Hope, head of investment at FPDSavills, said the recent yield shift marked a buying opportunity. ‘Consumer sentiment has remained remarkably positive despite the underlying threat of a global recession and the events of 11 September,’ he said. ‘Prospects for household spending growth remain good and there is evidence that tenant demand for retail warehouse space is increasing. This relatively benign demand outlook combines with a restricted supply pipeline and should ensure future upward rental growth.’

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt. NET LEASE 2020Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.