2022-08-04-莱坊-Retail_Warehousing_Monitor_Q2_2022_2页_581kb

• Investment volumes reached £394.8m, showing slight deceleration from Q1 but a significant year-on-year drop of 62% compared to a surge of 209% when comparing to 2-year benchmarks.
• Retail sales remained strong, with a 1.5% increase in Q2, despite consumer constraints and challenges from post-pandemic year-over-year comparisons.
• Footfall stayed marginally below pre-pandemic levels but outperformed other retail segments like sub-centres and high streets.
• Capital inflows from UK and overseas entities, including DTZ, Realty Income Corporation, and UBS, secured major transactions amidst economic uncertainty.
• Non-food categories drove performance, but sub-sector results were inconsistent; capital values peaked and declined, while rental growth held steady.
• Vacancy rates improved by 40 basis points to 10.2%, supported by stable rents and a tighter retail market post-Covid, with stronger tenants emerging.
• Yields rose to 4.75% for long-term assets, reflecting investor caution in the face of inflation and recession risks.
• The occupational market is robust, with surviving retailers displaying stronger financials and expansion plans, particularly in convenience and discount retail sectors.
• However, global uncertainties and abundant supply are easing investor sentiment, though the sector maintains appeal due to its sustainable income and resilience in key areas.