- Rent falls in the retail space are reversing
- Equity raises and M&A point to positivity among fund managers
- Even the London office market isn't as bad as it seems
Confidence seems to be returning to a commercial real estate market that has suffered in a high interest rate environment, which raised borrowing costs and weakened valuations.
A wave of activity has been taking place in recent months, suggesting that things are taking a turn for the better. Alongside bumper equity raises organised by the likes of Segro (SGRO), Unite (UTG) and Great Portland Estates (GPE) looking to capitalise on bargains, there has also been lots of merger activity between real estate investment trusts (Reits) as managers take action to address substantial share price discounts to net asset value (NAV).