The Investment Market
Overview
The Investment Market
Key Headlines
UK retail investment volumes totalled £1.03bn in Q3, down 26.4% from £1.4bn in Q2. On a year-on-year basis, retail investment dropped 15.5%.
Economic and political uncertainty, coupled with shifting consumer preferences, continues to negatively impact investor appetite for retail assets.
We have moved out our indicative prime yields for shopping centres by 50bps to 6.00% this quarter. High street and retail warehousing (Open A1) prime yields have also softened by 25bps each.
As we expected, shopping centres saw improved transaction activity in Q3, with £287.4m invested - the highest quarterly volume of 2019.
Foodstore investment totalled £320.1m in Q3, bringing the 2019 total to £1.05bn as of end-September, up from £629.5m over the same period in 2018. Prime yields are holding firm at 4.25%, as grocery retail remains a relatively defensive sector.
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