Savills puts For Sale sign on sheds
Published: 16 June, 2011
Now could be the time to sell retail warehouses, says Savills
Now may be the time for owners of retail warehouse assets to consider selective sales in order to capitalise on increased investor demand, according to Savills' .latest Retail Warehouse Bulletin.
The agent says retail warehousing is still delivering above average returns. This is mainly due to continued signs of yield hardening, albeit at a more gentle rate, and positive rental growth across the UK.
Jaime Dunster, investment director at Savills, said: “The return to positive rental growth in the retail warehouse sector has led to renewed interest in the asset class from investors of all types, particularly the UK-based institutions. These purchasers are primarily focussed on prime assets that have long lease lengths, covenant strength and dominance of catchment. However, with such a tight definition on what makes a retail warehouse asset prime, it is unsurprising to note that the availability of such stock is extremely limited.
