Market Perspective July 2020

How has the market reacted post Covid lockdown? And where to from here?

There is no doubt that office and retail markets have been badly hit by the economic fallout from Covid 19. But, despite  predictions to the contrary, industrial property has barely been impacted. To date, the industrial market has largely picked up from  where it was pre-Covid.  The caveat would have to be that it is early days. Many businesses  have come back to a backlog of work, and are confident of their workloads for the next 2-3 months. Beyond that there is some trepidation as to whether activity levels will continue, particularly as we head into the traditional six week pre-election “wait & see” period.

The most obvious aspects of the current market are

• As always in any time of uncertainly, the value of quality shines through. If anything, yields for quality, well located properties have firmed.
• There has been an upswing in leasing activity, particularly with smaller properties.
• C grade buildings are proving more difficult to move – either lease or sell.
• Rents for quality properties are not easing, and there are no more  incentives evident than pre-Covid.