UK Shopping Centre

and High Street Spotlight

UK Shopping Centre and High Street Bulletin
UK Shopping Centre
and High Street Spotlight

13 July 2017, by Mat Oakley

Uncertainty in the macroeconomic environment is leading many investors to focus on income security

Summary

■ Consumer confidence is weakening, at least in relation to the outlook for the UK economy. We expect that the impact of inflation on real earnings will diminish towards the end of 2017.

 

■ In the face of cautious consumers it is no surprise that retailer demand has become more forensic in recent months. However, there are still some expansionist segments, and vacancies in key markets remain low.

■ Shopping centre investment volumes in the first half of 2017 were 37% down year-on-year. However, with over £1 billion of stock in the market at the moment we expect the full year total to reach circa £3 billion.

■ High street shop investment volumes are also down year-on-year, most notably in Greater London. However, investor demand is intensifying for prime assets, and this is leading to strong yields being paid.

Articles from 'UK Shopping Centre and High Street Spotlight – Q2 2017'

UK shopping centre and high street

Consumer confidence is weakening, at least in relation to the outlook for the UK economy

 
 

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Key contacts

Mat Oakley

Mat Oakley

Director
Commercial Research

Savills Margaret Street

+44 (0) 20 7409 8781