In light of the current political climate, we would like to share the latest Shawbrook Bank report – The UK Commercial Property Market, Recent Trends and Outlook . From reading the report you will see the message is that the commercial market sector presents a good opportunity for medium and long-term growth if professional investors continue to work with experts such as Shawbrook Bank and Advocate Finance.
The main findings of the report are:
- The UK commercial property sector is a highly developed market with an estimated size of nearly £900 billion but it is not immune to larger macroeconomic shocks
- Average yields across all sectors have been stable in recent years remaining nearly unchanged at 5.0% since 2015
- A growing services economy is an overall positive backdrop for commercial office space. For the better part of the past two decades, growth in business and professional services has outpaced the wider service economy
- Staff relocations from the City to other European financial capitals will weigh on demand for office space in the next year. In the case of a no-deal Brexit, the economic consequences would unquestionably be felt in the sector. View our forecasts in the report…
- Although there are various potential sectors of the economy that require industrial properties, the closest relationship is likely to be found with the manufacturing and wider production sector.
- Industrial properties have shown resilience over the past years. Stockpiling activity and strong demand for warehouses from online retailers have helped the sector to withstand other economic headwinds
You can access the report here.