Commercial property: Market shows signs of recovery

According to the latest data, commercial investment in the UK rose by 42 per cent in June, with the commercial property yield remaining stable and experts highlighting the signs of recovery in the market.

In total, commercial investment rose to £1.3 billion in June, up from £755 million in May, with experts stating that the yield on commercial properties may solidify in key areas, with this being a typical sign of recovery in the commercial property market, as investors return to key sectors.

The commercial property sector has been significantly impacted by the coronavirus pandemic, with just 48 per cent of retail rents being collected since the June rent quarter day, according to the latest findings.

The retail sector felt the impact of the lockdown measures, with many being forced to close in March, but with lockdown measures now easing, many are re-opening and beginning to assess how their business has been impacted by the pandemic.

However, office and industrial properties have shown an improvement in resilience, with 65 per cent of rent being collected since the June rent quarter day, with all sectors of the commercial property market now showing improvement since the March rent quarter day.

Tom Wallace, Chief Executive of Re-Leased, said: “The rate of rent collection for the June quarter has been steadily strengthening over the past three weeks and the latest data shows that it has stabilised when compared to the same point in the cycle for March. It is very encouraging to see all asset types are now trending upwards compared to the last quarter.

“The easing of lockdown has meant more people are spending on the high street and getting back to the office, and this has restored some confidence.”

For help and advice on matters relating to the commercial property sector, contact our expert team today.

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Nick Davies
Nick is the Head of Property in our London office, having joined in the firm in 2005. His expertise covers a wide range of real estate transactions, with cases including both residential and commercial property deals, shops, pubs, restaurants, development sites, offices, lease renewals, enfranchisement, litigation and corporate support.