Latest news with #retailrealestate
Yahoo
24-07-2025
- Business
- Yahoo
UK retail property demand jumps as investors return
Investor appetite for retail real estate is growing rapidly, with demand for UK high street property surging by more than 50% over the past year. The latest figures from real estate analysts and market reports show renewed interest in both prime and secondary locations, driven by stabilising interest rates and signs of retail resilience. Property investment volumes rise amid stabilising interest rates According to industry data, retail property investment across the UK rose by 35% year-on-year in the first half of 2025. High street assets accounted for a significant portion of that increase, with investor activity climbing 56% as confidence returned to town and city centres. Analysts suggest the uptick is being fuelled by more stable monetary policy, with the Bank of England holding base rates steady since early spring. This has encouraged institutional and private investors to re-enter the commercial property sector after a prolonged period of caution. Retail warehouse parks and convenience-led assets are also gaining traction, but traditional high street units are seeing the sharpest rebound in demand. Retailers recalibrate store strategies as footfall improves The shift comes as retailers adapt their physical store strategies to reflect new shopping behaviours. Despite the growth of e-commerce, footfall in many towns and cities is gradually recovering, boosted by hybrid working patterns and improving consumer sentiment. Retailers are showing a renewed willingness to invest in flagship stores and experiential formats, particularly in areas with strong transport links and mixed-use development potential. While challenges remain for smaller towns with high vacancy rates, active lettings in key locations are encouraging property owners and developers to unlock previously mothballed projects. Some investors are also seeking out distressed retail properties with the aim of repositioning them for food, leisure or community-focused use—highlighting the growing trend towards diversification in retail real estate. Market outlook driven by mixed-use demand and regional growth Looking ahead, analysts expect retail property activity to remain elevated in the second half of the year, with mixed-use development seen as a major growth driver. Projects that integrate retail, residential, and hospitality elements are attracting significant interest from domestic and overseas buyers alike. In particular, regional cities such as Manchester, Birmingham and Leeds are experiencing notable investment flows, reflecting both population growth and strong local economies. London continues to lead the market in terms of transaction volumes, but regional high streets are closing the gap as regeneration schemes gather pace. With consumer inflation showing signs of easing and labour markets remaining stable, sentiment in the retail property sector is expected to hold firm. The demand for retail real estate may not yet have returned to pre-pandemic highs, but the sector is showing clear signs of a steady and broad-based recovery. "UK retail property demand jumps as investors return" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Globe and Mail
18-07-2025
- Business
- Globe and Mail
Macerich Schedules Second Quarter 2025 Earnings Release and Conference Call
SANTA MONICA, Calif., July 18, 2025 (GLOBE NEWSWIRE) -- WHAT: Macerich (NYSE: MAC) Schedules Second Quarter 2025 Earnings Release and Conference Call WHEN: Earnings Results will be released after market on Monday, August 11, 2025. Management will hold a conference call at 2:00 pm Pacific Time (5:00 pm Eastern Time) on that same day to discuss quarterly results. WHERE: Participants who wish to join the conference by telephone must register using the dial-in registration link below to receive the dial-in number and a personalized PIN code that will be required to access the call. Participants may join the live webcast by accessing it at the webcast registration link below or in the Investors Section of the company's website at REBROADCAST: Following the live webcast, a replay will be available in the Investors Section of the Company's website at About Macerich Macerich is a fully integrated, self-managed, self-administered real estate investment trust (REIT). As a leading owner, operator, and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich's portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 42 million square feet of real estate, consisting primarily of interests in 39 retail centers. Macerich is firmly dedicated to advancing environmental goals, social good, and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for ten consecutive years (2015-2024). For more information, please visit Macerich uses, and intends to continue to use, its Investor Relations website, which can be found at as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Additional information about Macerich can be found through social media platforms such as LinkedIn. Reconciliations of non-GAAP financial measures, including NOI and FFO, to the most directly comparable GAAP measures are included in the earnings release and supplemental filed on Form 8-K with the SEC, which are posted on the Investor Relations website at MAC-I
Khaleej Times
17-07-2025
- Business
- Khaleej Times
Dubai commercial property vacancy rate hits all-time low as businesses flock in
Dubai's commercial real estate is booming as vacancy rates are at an all-time low of 8.6 per cent, driven by the inflow of foreign players and the launch of new companies, said Sapna Jagtiani, director and lead analyst, Middle East at S&P Global Ratings. The high demand for commercial space is driving up rentals as well across the emirate, especially for prime/grade-A offices, she added. Sapna noted that this strong growth for commercial property is backed by regulations for businesses, a dynamic economic environment, and the low tax that the city offers to businesses. Stay up to date with the latest news. Follow KT on WhatsApp Channels. 'Dubai and Abu Dhabi are seeing resilient demand and small rental growth for retail real estate. Prime super regional malls continue to dominate the market, which has led to mall owners expanding their offerings,' she added. Industry insiders said that popular malls in Dubai have a waiting list for new clients due to the low vacancy rate. Sapna pointed out that shoppers in the Gulf Cooperation Council (GCC) are looking for unique concepts, new brands, and experiences. 'Urbanisation trends, especially in Riyadh and Jeddah, are driving demand for modern retail formats and omnichannel strategies. Mall owners who fail to stay on trend are likely to face rental pressure and higher vacancies. Luxury spending in the region remains high, driving growth for prime malls. Consumer spending in general, however, remains cautious given economic uncertainty, relatively high interest rates, and inflationary pressure,' she said in the latest notes on the local and regional economic landscape. Moderate correction Sapna projected that the Dubai residential property market could see a moderate price correction in 12-18 months. 'Dubai could see residential prices fall due to a potentially significant increase in new supply, but the degree of the correction will likely be moderate compared with previous downturns.' In May 2025, it projected not more than a 15 per cent correction in prices. She added that presales in Dubai are breaking records. "Demand for residential real estate remains high despite the escalation of Israel-Iran tensions and tariff disruptions. Favourable visa reforms and quality of life continue to attract high-net-worth buyers such that sales volume for luxury units priced above Dh10 million ($2.72 million) has increased by around 60 per cent year-over-year in the first half of 2025,' she added. Being a safe haven, historically, the UAE and Dubai have benefitted from regional and global geopolitical conflicts, which sparked population growth and investment inflows.
South China Morning Post
27-05-2025
- Business
- South China Morning Post
Hong Kong's Gale Well reels from market downturn, loses US$6.5 million on 2 asset sales
Hong Kong property investment firm Gale Well Group, which has been divesting assets, sold three shops this month, incurring a loss of more than HK$51 million (US$6.5 million) on two of them, as the city's retail real estate market remains mired in a downturn. Gale Well sold a 2,780 sq ft street-level shop at King Kwong Street in Happy Valley for HK$28.8 million, nearly 40 per cent lower than the HK$46 million it paid in 2008, according to Land Registry data. The transaction was completed on May 23 through a holding company, Fine Keen Investment. Gale Well chairman Rita Tong Liu is a director at Fine Keen, according to the Companies Registry. The company also sold a 1,537 sq ft shop on the ground floor of Haleson Building in Central for HK$38.8 million, according to property agents. The price represented a 47 per cent loss on the HK$72.8 million paid in 2011 by Parkmax Investment, according to the Land Registry. Liu is a Parkmax director. Gale Well's third divestment was a 21,702 sq ft three-storey shop on Morrison Hill Road in Causeway Bay for HK$110 million, according to Savills, which handled the sale. The transaction resulted in a profit of 49 per cent for Keenplan International, which bought the property for HK$73.8 million in 2005, according to the Land Registry. Liu is a director of Keenplan. Rita Tong Liu, chairman of Gale Well Group, pictured in June 2018. Photo: Edmond So Last week, Gale Well appointed Savills as the agent for three shops in North Point, Causeway Bay and Wan Chai, which have a combined indicative price of HK$190 million.
Gulf Business
22-05-2025
- Business
- Gulf Business
Saudi retail real estate shows cautious optimism in a shifting landscape
Image: Getty Images/ For illustrative purposes The growth path for retail real estate in Saudi Arabia is promising for 2025–2026, primarily driven by the government's commitment to infrastructure development, the rise of mega projects, and the entry of international brands. Key cities like Riyadh and Jeddah are seeing a surge in new retail developments, ranging from shopping malls and entertainment complexes to mixed-use developments that integrate retail, hospitality, and residential spaces. Increased tourism will further boost retail sales, attracting both investors and developers. The government's foreign investment policies, such as allowing 100 per cent foreign ownership, could also help grow the sector. Despite the positive market outlook, the sector must navigate challenges such as changing consumer behaviour, Underlying retail real estate trends remain robust The kingdom's Vision 2030 plan aims to diversify the economy beyond oil, focusing on retail, tourism, and entertainment. The plan includes projects such as Saudi Arabia's population of over 35 million is increasing steadily, with the younger demographic drawn to shopping, dining, and entertainment experiences. Urbanisation trends are driving demand for modern retail formats, including lifestyle and entertainment hubs and high-end shopping malls, making the kingdom a major target market for international brands and leading to increased demand for premium retail spaces. The government revised its tourist visitor target to 150 million by 2030 after surpassing its yearly aim of 100 million in 2023. As of third-quarter 2024, 85.5 million tourists had spent SAR209bn in the kingdom. Events like Riyadh Season, Jeddah Season, and the expansion of religious tourism in Makkah and Madinah are key demand drivers for retail real estate. New supply will pressure rental rates The Saudi retail real estate market is witnessing a new supply wave, with large-scale developments set to open between 2025 and 2030. According to Knight Frank's 2024 Saudi Arabia Giga Projects Report, 7.4 million square metres of new retail real estate is under development, including at Diriyah Gate, The Red Sea Project, and NEOM. The volume of retail projects in the pipeline does raise the risk of potential oversupply, particularly in secondary locations where demand may not be sufficient to absorb new retail spaces. Changing landscape of Saudi retail and lifestyle With an influx of retail space entering the market, rental rates could face downward pressure. Key factors influencing these rates include location, competition, and asset quality. With new malls and retail centres in the pipeline, landlords will likely offer competitive leasing terms to attract tenants. Knight Frank forecasts Riyadh's supply to grow by 50 per cent by 2027 and Jeddah's by 75 per cent over the same period. This growth could lead landlords to provide rental discounts, revenue-sharing lease models, and other incentives to maintain occupancies. Retailers are increasingly prioritising foot traffic and tenant mix over sheer size. While prime locations in Riyadh and Jeddah will likely maintain stable rental rates due to strong demand, secondary locations might see a drop in rental values due to oversupply. Traditional retail offerings need to evolve to meet changing consumer preferences. The demand for large anchor stores is declining as Saudi consumers shift toward digital shopping and experience-driven retail, a trend also evident in the UAE. This shift could weigh on rental rates in traditional malls, where businesses could struggle if they fail to adapt. Saudi Arabia's economy, a work in progress Saudi Arabia's economy, while diversifying, is still influenced by global oil prices. We recently lowered our oil price assumption by US$5 per barrel for the remainder of 2025 to $65/bbl for Brent and $60/bbl for WTI, reflecting our view that the oil market could be oversupplied. Intensifying global trade tensions could also weigh on macroeconomic growth. Investment in key emerging markets may remain subdued until there is greater clarity regarding the effects of protectionism on economic growth, inflation, and interest rates. Additionally, global geopolitical tensions are, in our view, at the worst level in decades, posing a serious risk of economic disruption. Lower oil prices and market volatility amid escalating global trade tensions and a fragmented geopolitical environment could dampen government spending and non-oil economic growth in Saudi Arabia. A weakening macro environment could affect consumer spending and retail sector performance in Saudi Arabia. Challenges such as potential oversupply, shifting consumer behaviour, and the rise of e-commerce will require market players to adapt strategically. If developers and landlords focus on differentiation, experiential retail, and flexible leasing models, they stand a better chance of remaining competitive. While the sector has strong growth prospects, careful planning and market positioning will be crucial for its long-term success. The writer is director, Corporate Ratings, S&P Global Ratings
