The value of commercial properties in Britain fell by £130 billion last year as landlords were hit by rapidly rising interest rates and the prospect of a recession. Commercial property capital values dropped by 3 per cent last month alone, according to the latest monthly index from CBRE, the real estate and investment company. The monthly fall in December means that commercial properties lost 13.3 per cent of their value in 2022, wiping about £130 billion from the value of Britain’s £1 trillion estate of commercial warehouses, shopping centres and offices. – The Times
The chief executive of Shoe Zone gave an indication in their recent results of how this is benefitting retailers.
“Our average lease length is now 1.8 years, giving us the opportunity and flexibility to respond to changes in any retail location at short notice. Property supply continues to outstrip demand and we expect to take advantage of this environment and significantly improve our property portfolio over the medium term.”
He added “We continue to transform our property portfolio with relocations/new stores being partially funded by landlords through rent free periods of typically 12 months.”