Welcome to this special edition of IN_ retail titled IN_ restaurants : CBRE’s regular magazine series dedicated to addressing the issues that matter to the retail industry.
In this issue, we bring together leading industry experts to discuss the remarkable growth of UK catering markets in recent years and look at future market prospects.
London, 8th January 2015 – Total return across all sectors was 1.6% in December 2014, according to the latest CBRE Monthly Index. The strong end of the year provided total return of 19.7% for the last twelve months, with capital value growth of 12.9%. In comparison, total returns for 2013 were much lower at 11.5%, with capital value growth of just 4.6%.
Today, CBRE, the leading commercial real estate advisor, publishes its predictions for what the New Year will bring for the property sector. Year on year, the sector will continue to expand, but the overall trend will be a slowing of growth to more sustainable levels.
Hong Kong, New York, Paris, London and Tokyo retained their positions as the world’s most expensive high-street retail destinations in Q3 2014, according to new research from global property advisor CBRE Group, Inc.
In this note, we set out the key issues which Brexit is already raising for retailers. Migration controls and currency movements may mean workers are less ready to work in the UK retail industry, which may increase time and cost. Currency devaluation will also generate more general cost inflation, though not everyone is a loser from these effects, and cost increases may spur yet more innovation in an already dynamic sector. The good news is that this year isn’t all about Brexit. The bad news is there are other more pressing concerns in 2017, with the rating revaluation and apprenticeship levy among the factors which retailers will have to grapple with. As always in retail, the winners will be the most agile and forward-thinking.