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Ash4781

Retail At Rock Bottom

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http://www.propertyweek.com/story.asp?sect...3143177&c=3

This downturn has entered its second phase, in which rental declines impact on capital values. From peak, retail rents have fallen 4.2% to the end of May, Investment Property Databank shows but, in reality, some locations are faring much worse (table 1).

Negative rental growth is now the dominant driver of capital value declines and is likely to push the overall peak-to-trough capital value fall above 50%. We expect yields to harden slightly in the second half of 2010 because of increased competition for good-quality stock, but falling rents will prevent capital values rising for the calendar year as a whole.

.....

We expect the demand/ supply imbalance to cause average retail park rents to fall by a combined 22.2% over the next 24 months. Capital values will fall by 17.6% this year, before flattening out in 2010. Over our five-year forecast horizon, retail parks will return 6.6%, but for four years from 2010 onwards will return a more than respectable 11.1%.

Interesting retail. Bit worrying for the banks with large commercial retail property exposure. Could this second phase appl to the housing market as over-supply in rentals gathers pace (as a few members have said low interest rates mean a lot of people don't have to sell in fact they can rent it out)

Oh Land Securities have offloaded Maidstone development (not bad yield for the new owners)

http://www.propertyweek.com/story.asp?sect...3143420&c=1

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http://www.propertyweek.com/story.asp?sect...3143177&c=3

Interesting retail. Bit worrying for the banks with large commercial retail property exposure. Could this second phase appl to the housing market as over-supply in rentals gathers pace (as a few members have said low interest rates mean a lot of people don't have to sell in fact they can rent it out)

Oh Land Securities have offloaded Maidstone development (not bad yield for the new owners)

http://www.propertyweek.com/story.asp?sect...3143420&c=1

Except there's loads of voids there. Prudential offloaded a big retail portfolio to a smaller property investment specialist with years of experience. Didn't even last 12 months before the administrators were called in.

This lot'll definitely be different, they'll be buying at the bottom, in for the long-term or perhaps just stupid enough to take what that twit Sibley says seriously.

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Except there's loads of voids there. Prudential offloaded a big retail portfolio to a smaller property investment specialist with years of experience. Didn't even last 12 months before the administrators were called in.

This lot'll definitely be different, they'll be buying at the bottom, in for the long-term or perhaps just stupid enough to take what that twit Sibley says seriously.

http://www.fremlinwalk.co.uk/interactive_map.htm

I make it five maybe six empty units. Sibley said everything was ok.

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