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Retail warehouse out-performance a thing of the past

By: Language: English Series: Property Forecast ; 11(6) June 2008, 10-11(2)Publication details: 2008Subject(s): Summary: Article looks at the historical performance of retail warehouse rentals and suggests that the trend of impressive growth is due to come to an end. Suggests that a significant fall in retail sales as a result of recession will see a considerable fall in retail rental growth during the period 2008-2011. Quotes the IPD All Property Index showing a yield of -9.7% for retail warehouses and considers that the market may be reaching a bottom shortly. Posits a retail return of around 5% for 2009, with a limited fall in capital values and minimal rent growth.

Article looks at the historical performance of retail warehouse rentals and suggests that the trend of impressive growth is due to come to an end. Suggests that a significant fall in retail sales as a result of recession will see a considerable fall in retail rental growth during the period 2008-2011. Quotes the IPD All Property Index showing a yield of -9.7% for retail warehouses and considers that the market may be reaching a bottom shortly. Posits a retail return of around 5% for 2009, with a limited fall in capital values and minimal rent growth.