It seems to me that there are both 'push' and 'pull' factors driving the current wave of acquisitions. Certainly the directors of these businesses must be aware that their turnover is going to be substantially lower in the next year or so, and so if they're going to sell it is better to do so while the last vestiges of the boom market are still reflected in the profit & loss account.

But at the same time could it be that the purchasers see something that those of us who are a bit too close to the retail market are missing?

While our market is undeniably tough, there is a strong argument for general practice firms to add to their retail exposure now. Retail agency is largely a volume business, while the office market, and even more the investment market, tend to generate 'lumpier' cashflows: the fees are bigger but they happen less frequently and less predictably.

So a retail agency team could be a good thing to have during a downturn: even in the toughest of markets lettings will still continue, leases will fall in and need renewing. Of course it's sad to see some of the best-known names in the business disappear but it's also good to see the fundamentals of the retail market proving attractive to global players like Jones Lang LaSalle.

And there are still clients out there who appreciate the personal service that comes from dealing with a small firm. Time for some new start-ups, perhaps.

Graham Parker, Editor

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