Retail footfall falls for British Land as sales increase
Despite all the negative news following the Brexit vote, British Land – the UK’s second-largest property company has said that demand remained strong for its properties at the end of December, while asset values showed signs of recovery.
According to its report released this Tuesday, their buildings have an occupancy rate of 97% with a weighted average lease length of eight years in the three month to the end of December, indicating that demand is still high for commercial properties remains high. The occupancy rate was 98% with a lease length of 9 years during the first half.
British Land manage £19bn of the UKs commercial property, and has said sales to retailers are up 0.6% during its third quarter trading period, even though footfall fell 0.6%.
While the business was “well placed”, Chris Executive Chris Grigg said in a statement that the company remains mindful of potential headwinds going forward.
Britain’s 900-billion-pound commercial property market was severely hit following the Brexit referendum, and commercial property funs worth over 18 billion pounds were suspended. However, investor appetite has since returned with the widest property index once again, showing climbing returns, but the market has still a way to go to match its pre-referendum levels.
Written by: The Team | On: January 19, 2017