“It is our view that a proper national rental rebasing will not have washed through the high-street retail market until 2015/16.”
For the consumer we expect that 2014 will be a year of improving optimism and declining savings ratios. This will feed through into higher spending in the nation's high streets and shopping centers.
2014 will see a highly fragmented retail landscape in terms of retailer demand. Prime and secondary towns and pitches look supportable, but tertiary towns and pitches will remain hard to let.
We expect that hardening yields in the shopping center investment market in 2014 will make the market increasingly institutionally dominated.
Prime high street yields have already moved downwards due to strong institutional demand. We expect to see more investor demand in 2014 for core plus type assets.
(This article features excerpts from the full report – please download it here)