Could Retail Space Tempt Investors?
Land Securities has noted in its first quarter interim management statement that activity surrounding retail developments is beginning to pick up, with an increasing number of businesses in this sector seeking new space. Chief executive Francis Salway explained that locations on the edge of towns appear to be particularly popular. The firm noted that demand from food and fashion retailers has resulted in the company seeking out some smaller development sites to supply the required outlets. Mr Salway stated: “Despite the mixed messages in the retail sector, our leasing activity demonstrates that the stronger retailers are looking to take new space.” Investors may want to bear his comments in mind when looking for real estate opportunities over the coming months. The hospitality industry – and more specifically hotels – could be another option, after a Jones Lang LaSalle report noted a rise in investment volumes in the hotel sector. According to the firm, France, the UK and Russia are leading the way in terms of the liquidity of their markets.
