Retail & Wholesale

Out-of-town shopping centres show steep growth

Britain's out-of-town shopping centres saw their value soar by 6% in the third quarter of this year, marking the second steepest increase since 2000, according to latest figures. CBRE's Prime Rents and Yields Monitor report found that the centres' capital appreciation dwarfed the 3.8% growth in values for in-town shopping centres, echoing growing demand for large, dominant destinations. Rents also grew strongly in out-of-town shopping centres, rising 2.1%, though not enough to keep pace with growing property values. As a result, yields were pushed down to 4.5%, their lowest since 2000, making these sites increasingly attractive for investors seeking to cut their exposure to risk. The overall shopping centre sector saw capital value growth of 4.5% and rental growth of 1.6%, the highest across all prime commercial property sectors, which averaged 2.2% and 1.1% respectively. The popularity of shopping centres seems to have come at the expense of high street shops as property values in the rest of the retail sector have grown by just 2.2%, a figure buoyed by strong capital value growth in central London of 5.5%. Natasha Patel, associate director at CBRE research, said: 'On the whole, we saw fairly modest capital value growth in Q3, but both rents and capital values in out-of-town shopping centres have grown remarkably.'


Note: News bulletin content has been provided by a third-party and is not the opinion of Santander

Other Articles

When you’re an established business, recruiting top talent in all the areas you need can seem like a never-ending challenge.


If you’re a start-up or small business, how can you put together an attractive employee package to appeal to top talent – graduate and…


Mexico is predicted to become one of the world’s top 10 economies in the next 10 or 20 years.

Stop fraud

More than one million incidents of financial fraud occurred in the first six months of 2016, according to official figures released by…

Santander’s Head of SME International Mark Collings discusses why exporting to new global markets may provide businesses with new and…

Where Next?