“What’s wrong with that?”

Buzzword of the year so far! The best is getting better, and the worst is getting worse. It applies to the assets and, to a lesser extent, the quoted sector. Driven by property fundamentals and impending legislation on environmental standards, we are experiencing a robust occupier market and a falling investment market. Not unique, but rare. In London offices, the demand for best-in-class space continues. One agent recently described it as a “race for space” with pre-lettings being announced on the dearth of environmentally friendly space and rising rents. £100 per sq. ft headlines in Baker Street and Victoria may now be the new norm.

Retail is defying the doomsters with the consumer proving resilient, for the moment. Prime centres are seeing rising occupancy and rental growth, albeit from seriously rebased lower levels. Successful retailers are expanding while purely online retailers are having a few problems. The logistics market is quieter with take-up falling by about 30%, but supply remains limited, and rents are “competitive” still.