Quarterly Review: Q4 2020

Quarterly Review: Q4 2020

• While COVID-19 case numbers in the UK are falling, they remain very high. This is likely to mean that severe restrictions will remain in place in the near-term.

• Second hand space causes a surge in central London office supply, and a two-tier market emerges.

• In the regional office market, there is less than a year’s worth of new supply. Leeds, Liverpool and Cardiff have the lowest supply levels.

• The weakness in the retail occupier market caused by lockdowns, office workers working from home and weak tourism flows meant that retail yields rose by between 50bps and 100bps y/y in Q4 across prime Central London retail streets.

• A rise in online sales supported industrial take-up across the regions, which rose by around 60% y/y to 42m sq. ft. in 2020.