Market outlook 9th August 2013

The Cluttons research and commercial valuation consultancy teams have launched the summer edition of the Commercial Property Market Outlook, which reports the increase in IPD total returns which are anticipated to reach double digits in 2013 for the office and retail sectors within Central London.

The capital appears set to take the performance headlines for another year, driven in large part by the demand from international investors for trophy assets in particular, placing further pressure on an already restricted supply. However, as yields for the strongest segments of the London market harden and attitudes to risk ease, investor appetite is now spreading beyond the capital, especially where well let South East offices and well located industrial continues to outperform.

Investor sentiment for the prime retail sector is also improving despite the on-going squeeze on real term incomes. Continued improvement in economic fundamentals and sentiment, combined with realistic pricing, now present attractive medium term opportunities outside prime Central London, especially for secure, long dated income.

The full report can be downloaded at