High street investment fell by a quarter in 2019 from £1.2bn to £961.1m, as rents and capital values remain under pressure. Following the worst quarter on record in Q3, volumes grew 68% in Q4, with £243.5m transacted.
Investor sentiment towards high street assets is becoming increasingly polarised. Demand is proving resilient for Central and Greater London locations (e.g. Ealing, Wimbledon, Romford) that have growing populations and improving transport links, while prime units in regional cities with dynamic workforces (e.g. Leeds, Manchester, Brighton) also offer good value.
Conversely, sub-prime locations or more affluent towns that have been impacted heavily by CVAs, hold less appeal, given the excess retail space, weak footfall and rents that have further to fall.