Property data
Rents
Retail rental growth in December, compared to December 2021, was in positive territory for retail parks, but growth remained weak at 1%. The Rest of UK Shops saw rental growth decline, by -1.7% following a sustained period of growth since the second quarter of 2021. Rental growth in both Shopping Centres and South East Standard Shops was minimal compared to the previous month. In 2023, Avison Young forecast data shows UK retail rents are expected to decline compared to 2022, although only by a small margin before returning to positive growth in 2024.
ANNUAL % CHANGE IN RENTS
Source: MSCI
Investment volumes
Retail investment volumes in 2022 totalled £6.2 billion, which is 19% lower compared to 2021 but almost level with the 5-year average. In Q4 the highest share of activity was for unit shops, driven by the sale of the Fenwick’s store on Bond Street, to Lazari Investments for £430 million. Retail Parks accounted for the second highest share of transactions during the quarter. Transactions included the sale of The Drove in Newhaven for £12 million and the Longbridge Shopping Park in Birmingham for £37.37 million, both to the Realty Income Corporation.
RETAIL INVESTMENT TRANSACTION VOLUMES
Source: Property Data
RETAIL DEALS Q4 2022
Source: Avison Young
Vacancy rates
Source: Avison Young, BRC/Local Data Company
Shopping centres
High Street
Retail Parks
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