Hot sectors
Logistics property is continuing its hot streak, with Britain’s biggest property company SEGRO reporting soaring profits in February, Blackstone continuing to spend heavily and FTSE-100 giant British Land entering the urban logistics sector through a new `Retail & Fulfilment’ business stream.
Not surprisingly, e-commerce boomed during all three UK lockdowns, rising from an average 20% of UK retail sales to above 30% and still showing little sign of falling back. We explain later in this research the technological challenges this provides for retailers and logistics developers.
Life sciences has found a whole new fan club: having been the speciality of a handful of expert developers and owners like Reef Estates and US fund manager Harrison Street, the most sought-after and biggest assets for sale are now attracting up to 20 bids, showing the depth of interest.
The ‘beds’ sector includes retirement living, PRS and residential, which have all seen major spikes in interest. The latter two asset classes are attracting renewed focus as the world grapples with blended working where offices and homes share duties.
The sectors continuing to show real distress are retail and leisure, yet even in these arenas a spirit of reinvention is spreading, with a widespread acceptance that less retail and more residential, medical and education use in town centres could provide a winning formula.
