Case Study - Market Flashcards
What was the Market like in 2019?
In 2019 there was a general election and tension around Brexit and the trade deal which was creating uncertainty within the market. Interest rates were low at 0.1%.
What was the Retail Market like in 2019?
2019 was the first year to show an overall decline in retail sales, there was also a wave of administrations such as Mothercare and Clinton cards along with closure of debhanams stores Brexit uncertainty and so you were beginning to see a downward pressure on rents.
What was the Market like in February 2021?
UK was in another lockdown, market uncertainty, high vacancy on high street was putting a downward pressure on rents and yields moving out.
What was the Market like in September 2021?
September 2021 saw a rise in inflation, fuel prices were rising, bank of England rate was still low at 0.1%.
What was the retail market like in September 2021
Saw a good demand for retail were rents were realistic, Allsop commercial auction was the biggest sale since 2018 with retail comprising 75% of the catalogue, saw good demand for retail where rents were realistic.
How would your advice change today?
Today my advice to the client would be that yields have moved out as their is less investor sentiment to buy property given with most major banks investors can receive a 5.5% return. In auctions catalogues are much smaller, there is a price gap between what sellers expect to sell their properties for versus what market participants will pay for it.
