Publication

UK Shopping Centre And High Street Bulletin – Q3 2016

We expect that the strongest demand next year will be for the most secure income streams

Summary

■ The weakness of the pound will represent a challenge to retailers and consumers in 2017. However, consumer confidence and savings ratios are indicating that trading over Christmas 2016 could be better than expected.

■ We expect to see continued steady demand for new stores in 2017, particularly from retailers at the value end of the spectrum and leisure operators. We have also noticed a slight uptick in demand from the major foodstore operators.

■ The final quarter of 2016 should be a busy one in the shopping centre investment market. Many sales that have been deferred over the last nine months could come to the market in the final three months of the year, and we are aware of a large number of buyers who are looking to enter the market.

■ The high street retail investment market has remained robust this year, albeit dominated by smaller deals. 2017 could see a change to this picture, with more activity on mid-sized lots as institutional investors return to this space.

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