Take-up in May 2017, although below average, was 0.9 m sq ft representing a monthly rise of 8%. The largest transaction of the month was Nex Group’s acquisition of 115,700 sq ft at the London Fruit & Wool Exchange. Availability fell for the third consecutive month, decreasing by 2% to stand at 14.3m sq ft, below the 10-year average of 14.8m sq ft. The level of under offers increased for the third month in a row, rising by 6% to stand at 3.8m sq ft.
City office rental values fall for second month in May Capital values increased 0.4% at the All UK Property level in May 2017. Across the UK rental values rose 0.1% on average over the month. Rental value growth in the Office sector (0.1%) was outpace by the Industrial sector with a 0.2% rise over the month.
The post mortem on the U.K.’s General Election is now well underway. The Conservative Party, led by Prime Minister Theresa May, was widely expected to increase its majority. Instead, it lost seats and only remains in control of the government with the support of the Democratic Unionist Party (DUP), from Northern Ireland, with only 10 Members of Parliament. Several explanations have been advanced in the wake of this result. A poor campaign and policy U-turns on the part of the Conservatives along with public dissatisfaction with the ‘hard Brexit’ that they had been pursuing whilst in government. A high turnout amongst younger voters who tend to be favour E.U. membership and are inclined to vote for the left-leaning Labour Party which promised, amongst other things, the abolition of fees paid to study at university.
UK commercial property prime rents up 0.8% in Q1, boosted by Industrials Rental values in UK prime commercial property increased by 0.8% in the first quarter of 2017. 11% of monitored locations recorded increasing rents, while 7% recorded decreasing prime rents. Prime yields for All Property remained relatively flat, falling -4bps and maintaining 5.4% in Q1 2017.