£20 billion wiped off the value of British retail real estate

Intu shopping centre

Research from CBRE, one of Britain’s biggest commercial real estate services and investment firms, suggests that capital values of prime or good quality high street shops have dropped by 10% since June.

The consultant’s monthly index report on the state of the retail industry says activity and confidence across the sector is depressed, with prime high street and secondary shopping centre locations affected.

In October, Intu Group, which owns 17 major shopping centres in the UK, said the value of its properties had dropped by 3% since July because of “negative sentiment towards UK retail property”.

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Speaking to The Times today, Matthew Oakeshott, chairman of Olim Property, which manages commercial property worth £900 million on behalf of pension funds, said: “Most British shops and shopping centres are unwanted and overvalued. They’re burning platforms in a perfect storm. Investors should jump off while they still can.”

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Tags : CBREintuReal Estateshopping centre
Rob Corder

The author Rob Corder