The requested news item does not exist. Please return to News
According to Jones Lang LaSalle’s latest UK commercial property forecast
London, 2nd October 2013 - Jones Lang LaSalle’s latest UK commercial property forecast reflects more positive economic expectations with all-property total returns climbing to 6.6 per cent for 2013 from 5.8 per cent in the firm’s previous forecast last quarter.
Of all commercial property sectors, offices are expected to deliver the strongest returns, particularly in Central London markets at just under 9% while retail sector performance will continue to be dominated by West End shops, with shopping centres lagging. The industrial sector meanwhile is expected to perform marginally better than the retail sector over the next five years, boosted by the higher income return.
Mark Jones, Director of Strategic Asset Management at Jones Lang LaSalle, said: “Returns will still be mainly driven by income return, although capital growth will also show a modest increase this year, reflecting yield compression. We seem to be turning a corner in terms of market sentiment filtering out of Central London and the first stirrings of sustained rental growth.”
Andrew Burrell, Head of EMEA Forecasting at Jones Lang LaSalle, added: “Recent numbers from the UK economy have been more positive and this is reflected in our property view for 2013. But we remain cautious about the longer term as there are still significant hurdles for the economy to overcome before we revise our outlook upwards.”
Jones Lang LaSalle Forecasts of IPD UK 2013 - 2017
+44 (0)203 147 1180
Emma Hollingshead - PR
+44 (0)207 399 5161