• Flight to quality pushes up prime rents

Retailers are more selective than ever both in terms of the countries they choose and the type of space they take, with the focus firmly on the best pitches in the major locations. The strength of occupier demand for the best space has resulted in 0.7% increase in CBRE’s EU-27 Prime High Street Rents index in Q1. In contrast, there is very little demand for secondary space, with a few exceptions, most notably for good secondary locations in major German cities. In general, rents in secondary locations continue to decline.

• A squeeze on disposable incomes limits retail sales growth

Retail sales recovered slightly in Q1, growing by 0.5%, but there were significant differences by country. Poland, Germany, Sweden and the UK all saw positive growth, but retail sales fell in Greece and Italy and were flat in Spain. Whilst retail sales figures in the PIGS market represented an improvement over the previous quarter, all are expected to show a significant decline in 2013, as disposable incomes remain under pressure.

• Confidence remains weak despite some uplifts

Consumer confidence is weak in nearly all markets and remains well below the long term average in Europe as a whole. Nevertheless, sentiment did improve in Q1 in some of Europe’s more fragile economies, including Spain and Portugal. Retailer confidence fell slightly between December and March.

Připravili jsme první ze série reportů, kterými chceme pomoci nájemcům v lepší orientaci na současném trhu. Tento report se zaměřuje výhradně na náklady spojené s přípravou a vybavením kancelářské jednotky a zodpovídá následující otázky:

• Co je standardem na současném trhu?
• Co dodává standardně pronajímatel a co naopak nájemce?
• Kolik bude nájemce stát úprava prostor před nastěhováním?
• A jak dlouho bude celý proces stěhování trvat?

CBRE Prague introduces the first in a series of reports which aim to help occupiers make informed decisions regarding their real estate in the current market.This report fully focuses on fit-out costs which are a substantial cost when relocating to new office premises and answers following questions:

• What is the current market standard?
• What  is landlords standard offer?
• How much it will cost me to fit my new office premises?
• How long will the relocation process take?
  

Shopping centre development freeze finally over

•       The long-run freeze in major shopping centre development has ended. Anchor store deals have now been announced in Glasgow, Leeds, Oxford, Bracknell and Bradford: a precursor to construction starting.

•       Due to tourist spending and safe-haven inflows, boom conditions continue to prevail in Central London shops markets. Residential prices have strengthened across most of Inner London, triggering renewed interest in major mixed development opportunities: a string of major schemes are now in play.

•       London now accounts for 40% of all shopping centre construction activity in GB.

Retail warehouse pipeline continues to contract

• The amount of retail warehouse park space under construction is currently just 44% of the level recorded in September 2007.

• The retail warehouse park development pipeline has been in almost continuous decline since H2 2004 (a decline of over 40%).

• Retail park development proposal levels have halved since September 2007. 

• Retail park development activity levels going forward will, to a significant extent, be determined by planning attitudes to A1 proliferation in the park stock, the primary high value demand area.

Grocery development – the boom that never was

• Overall, the grocery pipeline has grown by over 19.63m sq ft (68%) since the onset of the credit crisis in September 2007. The amount of space actually under construction has not however lifted markedly.

• At 48.45m sq ft, the grocery pipeline now accounts for 40.03% of the all shops development pipeline, up from 25% four years ago, and 45.2% of space under construction.

• Construction activity levels over time, relative to pipeline totals, provide the best medium-term guide to the amount of space making its way through the pipeline. The average over the 2002-2007period was 8.2% of the total pipeline. The average since September 2007 has fallen to 7.4%.

The publication is about B class office buildings in Warsaw, which constitute a significant part of the office stock in Warsaw and many regional cities. The investors of this kind of schemes, having lost anchor tenants, often face the dilemma what to do next. Change the designation of the premises? Reduce the rent? Or maybe demolish the building and replace it with a higher and more modern one?

-          The All Property total return was 0.6% over the month and now stands at 3.9% for the year to end-May 2013.

-          Capital values increased by 0.1% over the month and have declined by -2.2% over the year. Central London’s West End performed particularly strong, where capital values grew by 0.8% over the month.

-          Rental values have remained stable so far in 2013. All the main sectors recorded flat rents. City and West End offices recorded the highest growth in rents, 0.5% and 0.2% over the month respectively for each

• April’s 0.6% total return for All UK Property was a slight increase on the 0.5% recorded in March while capital values remained unchanged from March.
• Central London offices continued to outperform, however, the main driver in April was Mid Town offices with capital value growth of 0.5%.
• All Property rental values remained flat for the fourth consecutive month. At the sector level Central London Offices recorded the largest positive rental value growth, driven by City offices, with rent increasing by 0.3%.
  

• The depiction of the Dutch office market as uniformly vacancy-ridden is one-sided and incorrect
• Under the surface of aggregate figures, an increasing segmentation shows that various submarkets are moving in different directions
• Whereas overall vacancy is around 15%, the average CBD vacancy in the major cities is less than 9%, and this still includes obsolete properties. At some locations, such as Zuidas Amsterdam and Utrecht CBD, the market is tight, indicating that vacancies increasingly concern a pool of property no longer able to meet occupier requirements and therefore no longer part of the active market
• This pattern is also visible in other European markets, but is clouded by the fact that for the Netherlands, nationwide figures are being used, whereas other markets generally only have data on the largest submarkets available
• Prime yields in the Netherlands have now risen to attractive levels, particularly when compared to fixed-rate investments, but also when compared to yields in other European markets
• There is no structural reason for investors and lenders to avoid the Dutch market. In fact, as more clarity about the direction of the different submarkets appears, an increasing number of opportunities are visible