TMCnet News
Retail Sector Deteriorates While Industrial GrowsChallenges in the retail sector have intensified over the current quarter, while industrial property continues to see exceptionally strong growth in demand from occupiers and investors alike. RICS monitors trends in the commercial property investment and occupier markets on a global and regional scale through quarterly surveys to industry experts. With a focus on occupier and investor sentiment, it identifies market trends earlier than other surveys. Economic conditions have remained solid over recent quarters helping to underpin the occupier market. Solid income potential should help offset the impact from tighter Federal monetary policy, for the time being at least. Occupier sentiment Respondents noted a sharp increase in demand in the industrial sector (+71% reading). Availability in this sector declined and rents are expected to post stronger gains than other parts of the market. In contrast, the retail sector saw a steep decline in demand (-59% reading) as availability rose noticeably, landlords increased inducements and rentals declined in both prime and scondary locations. Tenant interest for office space rose moderately, as did inducements and availability. Some growth is anticipated in prime office rents although the outlook remains flat for secondary. Investment sentiment Respondents reported a strong rise in investment enquiries for industrial assets and a solid increase in demand for offices but enquiries fell for the retail sector. Foreign investment demand fell noticeably in the retail segment and showed a moderate decline in the office sector. Predictably, the supply of industrial properties declined over the quarter and rose for the retail sector. Respondents upgraded expectations for capital value growth in the office and industrial sectors relative to Q1. Prime and secondary industrial values are expected to lead the way with more moderate gains in prime office prices. Retail projections were revised lower with capital values anticipated to fall in both prime and secondary locations. For more information on the Commercial Property Monitor, visit rics.org. Confidence through professional standards RICS promotes and enforces the highest professional qualifications and standards in the valuation, development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards - bringing confidence to markets and effecting positive change in the built and natural environments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180816005519/en/ |
