Retail property report suggests resurgence in North | 22 November 2012
A new report highlighting strength in the commercial retail property sector could suggest a recovering market in the North of the country.
The data from property consultants Lambert Smith Hampton (LSH) is published following research which claimed that investment in commercial real estate has suffered dramatically because of the lack of new buildings being built.
According to propertytalklive.co.uk, the commercial insurer RSA and the Centre for Economics and Business Research discovered earlier this month that new commercial property builds in Scotland and the North West have dropped dramatically by 51 per cent and 49 per cent respectively. This has had a profound impact on the number and value of commercial real estate deals in the North of the UK.
However, new data from LSH finds that retail property deals in Yorkshire are booming, accounting for a massive 83.5 per cent of the regional market in the third quarter of 2012.
Although conversely, the total value of office deals is said to have dropped, thestar.co.uk writes.
Overall, the LSH report looks positive. Its research also found that investors have almost doubled the value of commercial property transactions in Yorkshire overall – even though the total value of deals is just shy of those recorded in the same quarter last year.
LSH says that investment deals in the third quarter of 2012 rose to £303 million – up from £172 million in the previous quarter – although this is below the £306.5 million recorded in the same period in 2011.
Ezra Nahome, chief executive of the group, comments: “Overall, investors continue to be wary of regional investment due to the depressed occupier market.
“However, one trend that emerged this quarter was that when large, modern and well-let regional shopping centres and retail warehouses come to the market they attract purchasers, mainly because of the secure income they offer.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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