Healthy occupier demand and lack of supply, particularly in the form of new developments, has reduced UK retail warehouse vacancy levels to 5.9%, a fourteen year low (Source: Trevor Wood Associates).

While we may expect a limited increase in assets coming to the market for sale, following disposals from retail funds in the immediate aftermath of the EU referendum in the UK, this is unlikely to be more than seen in 2015.


Outside of retail fund holdings, low leverage and strong bank liquidity, compared to the previous crisis, indicates a relatively stable intersection of investment demand and supply in the retail warehouse market.


Low gilt yields, a currently liquid lending market and depreciating sterling also makes the retail warehouse market increasingly attractively priced for overseas buyers.


In our view, based on current forecasts, there is value to be found in dominant retail parks with low rents, quality and value retailing tenants, particularly in areas where ecommerce channels are less established.




Citigate Dewe Rogerson

Patrick Evans / Stephen Sheppard / James Madsen / Alice Stewart


Tel: +44 (0)20 7282 2966


  • 21 September 2016