• CBRE’s 2017 Outlook report provides a comprehensive overview of the key trends affecting UK property markets in 2017. Alongside core sections covering the economic, political and investment outlook there is coverage of every major investment and occupier sector. • There is an improved global economic outlook, but inflation is now a more significant risk than previously. There is less concern about emerging markets. • UK GDP growth is expected to slow to 1.4% in 2017 due mainly to Brexit-related uncertainty and a tighter labour market. • The Brexit process will mean a very uncertain 2017, with some volatility in markets expected even if the underlying economy is performing well – not least when Article 50 is served. • 2016 investment volumes likely to be 30% down on a very strong 2015, with 2017 slightly weaker than 2016.
Take-up in January 2017 was 0.5m sq ft, a large monthly fall due to high levels of take-up in December, this meant take-up was 49% below the 10-year average. Availability fell marginally to 14.1m sq ft, 4% below the 10-year average of 14.7m sq ft. The level of under offers rose by 9% over the course of the month to stand at 2.2m sq ft, but were 23% below the 10-year average of 2.8m sq ft. The largest deal of the month saw COS Stores acquire 60,100 sq ft at 1 New Oxford Street, WC1.
Prime UK commercial property rents increase 0.4% in Q4, 3.7% in 2016 Rental values in UK prime commercial property increased by 0.4% in Q4 2016, bringing annual growth to 3.7% for 2016. Prime yields remained relatively flat, falling by -1bp to 5.4% in Q4. Overall, prime yields increased by 11bps over 2016 for All Property.
Logistics Market Snapshot All data corresponds to UK warehouses of institutional grade in excess of 100,000 sq ft. An overview of key supply, take up, land availability and construction for the UK logistics market.
Steady start to 2017 for UK commercial property UK All Property rental values increased 0.1% in January 2017 All Property capital values rose by 0.3% on average in January, with Industrials again outperfomring the other main sectors (0.4%). All Property total returns were 0.7% for January, down from December's 1.1%.