Salar posted on July 15, 2011 05:12
The phrases ‘risk curves’ and ‘quality secondary’ are increasingly heard in informal conversation suggesting that movement may be imminent, it says. However, there is little debt to support such a move, despite promising trends in the Bank of England’s latest credit survey. By Property Wire.
As far as investment is concerned transactions are limited, but receiver stock is on the market with many deals linked to redevelopment and asset/tenant management opportunities. Yields are stable, although secondary is expected to weaken of the course of the second half of 2011.
In the retail sector, retailers continue to face difficult trading and tight margins as consumers look for value. Costs are undermining profits and operators are looking at new formats and services.
The West End is seeing rental growth in all submarkets due to lack of Grade-A space. The City is less pressured but region leasing is sluggish with vacancies stable, but high, it also says.
In Industrial sector indicators are positive, but demand is patchy except for supermarkets and internet sales distributors who are absorbing the remaining large Grade-A large floor plates.
House price stability remains very sensitive to interest rates, mortgage availability and wage growth. Price declines are expected in 2011, although London continues to attract investors, the report adds.