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1、UK Mid YearMarket OutlookIntelligent Investment2024REAL ESTATECBRE RESEARCHREPORT2CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKContentsEconomic OutlookInvestmentSustainabilityOfficeIndustrial&LogisticsRetailResidential(Residential,Affordable Housing,Purpose-Built

2、Student Accommodation)01020304050607OPRE(Hotels,Leisure&Pubs,Healthcare,Senior Living,Roadside&Automotive,Self Storage)Data CentresLife Sciences0809102CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UK3CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market O

3、utlook 2024|UKIntroduction2024 started with a renewed sense of optimism.While there was evidence of improved positivity with a pick-up in retail sales,consumer confidence,and a return to economic growth,there have been some less encouraging signs.Notably,the path of the inflation rate initially fell

4、 short of expectations as it all but levelled off,and investment volumes hit a record low.Still,as we find ourselves in the middle of the year,there are now stronger signs of a turning point.Now that inflation has reached the Bank of Englands 2%target,the likelihood of an interest rate cut in August

5、 is high.As the cost of living pressures moderate,consumer demand will rebound.Overall,the improving economic backdrop is positive for both occupiers and investors,which should stimulate activity.And,we are no longer living under the spectre of an impending election.The Labour party won a landslide

6、victory,securing 411 seats.This gives the party a clear mandate and capability to drive its policy priorities.Our analysis of consumer confidence shows it increases in the period following an election in over 70%of the time.We expect this trend will be mirrored now and so the new Government will boo

7、st sentiment and provide a fillip to the economy.From a real estate perspective,we particularly welcome the commitment made by the Labour party to reform planning.This has been an underlying challenge in our industry for some time,with the time taken to get residential planning permission doubling o

8、ver the last 10 years.The party has acknowledged that radical solutions are needed to boost housing delivery to the desired 1.5 million homes over the termof this Parliament.Executing a New Towns programme will be challenging.It will require substantial Government intervention(suchas redefining the

9、Green Belt to grey belt)and investment,but it is a vital initiative.The proposal to make the mortgage guarantee scheme permanent will also help support some first-time buyers who otherwise might not have been able to raise a deposit.Other initiatives include plans to drive infrastructure projects,in

10、cluding allocating 1.8 billion to upgrade ports and build supply chains in the UK,and a review of business ratesCollectively,we believe these policies could be advantageous for both occupiers and investors and should stimulate activity.Mid Year Market Outlook 2024|UK 2024 CBRE,INC.Economic Outlook5C

11、BRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKECONOMIC OUTLOOK Inflation continued its steady descent,falling from 4%at the end of 2023 to the Bank of Englands 2%target rate in May.This was helped by falls in food price inflation and falls in energy prices.Still,cor

12、e inflation has remained sticky,falling from 5.1%to 3.5%over the same period,in large pushed by services inflation not falling as much;moving from6.5%to 5.7%.So far this year The Bank of England base rate has remained unchanged at 5.25%since March 2023.However,market sentiment has shifted towards ra

13、te cuts,with two members voting to cut rates at the most recent meeting in June.The labour market remained solid but has recently weakenedslightly.The latest data showunemployment has risen to 4.4%,coupled witha fall in notified job vacancies.In addition,the number of people who are economically ina

14、ctive due to long-term illness has increased by 750,000 since the end of 2019.This has contributed to the overall labour force being virtually static since then.This has potentially exacerbated upwards pressure on wages.The indexation of the National Minimum Wage has contributed to nominal wage infl

15、ation remaining above long-term average levels at 5.6%(including bonuses)and the feed throughof these costs has contributed to the stickiness of core inflation.GDP increased by 0.6%in the first quarter.Thiswas a welcome respite from the falls in activity Q3 and Q4 2023.The strength of the service se

16、ctor was a key component of growth.Consumer demand also picked up with retail sales bouncing back after a poor end to 2023.6CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UK Althoughinflation is now at the Banks 2%target,we expect continued domestic inflationary press

17、ures for the remainder of the year.This willlead to some volatility in the headline figure.Wepredict a slow decline in wage increases and services inflation.Some job shedding will put downward pressure on wage inflation and move it closer to long-term average levels.The Bank of England will maintain

18、 a cautious approach to interest rate cutting.Anymovement will be data dependent,with MPC members keen to see inflation and wage growth solidly anchored at lower levels.Overall,there will be modest growth of around 1%across 2024 as a whole.Still,momentum will build through the year,and so annual GDP

19、 at Q4 will be higher at 2.0%.The main driver will be real income growth.This will reflectthe acute dropin inflation and the more gradual slowdown in nominal wage growth.Interest rate cuts will also provide a boost to consumer and businessdemand.Risks to the outlook remain disruptors to the trajecto

20、ry of inflation.Domestically sticky wage inflation and,globally,the Middle East conflicts proximity to energy markets,could both cause delays in interest rate cutting and dampen the growth outlook.The fiscal position is unlikely to change significantly following the election.Whats still to comeECONO

21、MIC OUTLOOKInvestment 8CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKINVESTMENT Investmentreturns for real estate have improved.Capital values in the industrial and retail sectors have stopped falling,and positive total returns reappeared at an all property level.Y

22、et divergence in performance across sectors is still evident.Office capital values continued to fall in H1 2024,while rental growth was stronger for the industrial and multifamily sectors than in retail and offices.Transaction activity has been slower to improve,with investment volumes below their a

23、verage level from the last decade.While there are signs that investor interest is now returning to the market,this has not yet crystalised into a notable increase in deals.However,activity is more resilient in the living sectors and there has been more liquidity for smaller lot sizes.There has been

24、M&A activity in the UK listed real estate market,with two mergers concluded in H1.The listed sector saw large and persistent discounts to Net Asset Value through 2023 and into 2024.This has encouraged companies to propose transactions and other corporate actions that can capitalise on divergence bet

25、ween the stock market rating of the sector and the value of the underlyingassets.Real estate debt markets remained liquid and,while higher interest rates have weighed on market activity,the cost of debt has eased over the last six months.Loan originations continue to be dominated by refinancing rath

26、er than new investments,but there is competition among lenders to refinance high quality assets.Distressed sales to resolve more difficult situations are still relativelyuncommon.So far this yearFigure 1:Investment returns and investment activity,20212024Source:CBRE Research-20-100102030051015202521

27、 Q121 Q221 Q321 Q422 Q122 Q222 Q322 Q423 Q123 Q223 Q323 Q424 Q124 Q2Year on year total return(%)Volume traded bnInvestment Volume(LHS)CBRE UK Monthly Index(RHS)9CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKINVESTMENT We expect to see the improvement in investment

28、returns continue through the second half of the year,with capital values bottoming out across all sectors and income return continuing to drive positive total returns.Our research has shown that investment at the trough of the market should be beneficial for those investors with capacity to act.Howe

29、ver,investment into the right locations and assets will be key,as structural changes continue to affect occupier and investor demand in differentsectors.We also expect transaction activity to gradually increase.Despite uncertainty around pricing,an improving outlook for interest rates,coupled with 1

30、8 months of relative inactivity,will lead some investors to deploy capital once more as they look to refresh and reposition their real estate portfolios.This should,in turn,facilitate sale of properties by investors that need to meet redemption or debt obligations.As noted in our Real Estate Market

31、Outlook 2024,further disposals of real estate by UK defined benefit pension funds are likely as more schemes transition towards buyouts.Sentiment is improving in debt markets and both bank and non-bank lenders are looking to increase originations in the second half of the year.Industrial&logistics,d

32、ata centres,and the living sectors are currently most favoured,but we expect liquidity across all sectors for financing high-quality,well-located assets with strong sponsors.Nonetheless,new lending will need to be balanced with the management of risks in existing loan books as the market recovers.Wh

33、ats still to comeSustainability 11CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKSUSTAINABILITY The Financial Conduct Authority(FCA)introduced the anti-greenwashing rule for all registered financial firms in the UK.It mandates that any sustainability-related claim a

34、bout financial products or services must be correct,clearly communicated,and capable of being supported by evidence.Asset managers should ensure marketing materials,reporting to clients and public disclosures are consistent with the anti-greenwashing rule.Breaking this rule could result in reputatio

35、nal damage and potential enforcement action from the FCA.So far this year Since February,all new developments in England over 25 m must show they will achieve 10%biodiversity net gain to be granted planning permission.Despite some concerns the private market would not be able to meet demand for biod

36、iversity units,CBRE is not aware of this preventing or delaying developments so far.However,the limited availability of biodiversity units for less common habitats,such as rivers and streams,has led some developers to adjust their plans.To date,we have noted a developer preference for achieving biod

37、iversity gain on site rather than buying off site units from third parties.Developments and new renewable energy sources have been delayed due to limited grid capacity.Due to a backlog of connectionand grid reinforcement requests,in some parts of the country new clean energy sourcescannot come onlin

38、e or building heating electrification cannot be supported,delaying progress towards net zero.Illustrating the size of the backlog,the total connections queue is forecast to reach 800GW by the end of 2024,over four times the UKs anticipated electricity demand in 2050.12CBRE RESEARCH 2024 CBRE,INC.Int

39、elligent InvestmentMid Year Market Outlook 2024|UKSUSTAINABILITY Labours manifesto strongly hinted at increasing minimum energy efficiency standards by 2030 in the private rented sector.Due to the closedeadline,it is reasonable to expect this regulation to be introduced in 2024.It has not been revea

40、led which EPC grade would become the minimum requirement,but any increase will require investment from many landlords to prevent their properties becoming illegal to let.Starting to improve energy efficiency in 2024 will help landlords avoid supply bottlenecks as the deadline gets closer.Labour pled

41、ged to create Great British Energy with the aim of decarbonising the power grid.Great British Energy will be capitalised with 8.3bn to invest in renewable energy infrastructure.Even if spending is weighted towards the end of the Parliament,this could still mean hundreds of millions of public money i

42、nvested into green energy infrastructure in 2024.This represents an opportunity for investors to co-invest in infrastructure projects and reduce risk by sharing it with the public sector.The UK Sustainable Disclosure Requirement(SDR)will become mandatory for FCA-regulated firms in December 2024.It a

43、ims to facilitate investment into sustainable products by introducing sustainability-related labels and disclosures.Despite similarities to the European Sustainable Finance Disclosure Regulation,the SDR represents a new disclosure mechanism which asset managers will have to prepare for if they are t

44、o attract capital targeting sustainable investments in the UK.Firms can start to apply sustainability labels to products voluntarily from July 2024,taking this approach could provide a first movers advantage.Whats still to comeOffice14CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market

45、 Outlook 2024|UKOFFICE Demand for the best quality office space within well located,high specification,and sustainable buildings remains strong.The majority of larger office lettings over the past year have been in new developments.During the same period,more than a third of the total Central London

46、 officetake-up transacted at rents higher than the prevailing submarket primelevel.The supply of secondhand space is above its historic average,and as occupier demands shift towards higher quality stock,some poor-quality units have been available for an extended period.These types of buildings are i

47、ncreasingly being purchased with the intention of change of use type.In Central London alone,this has amounted to more than 400m of offices either purchased or placed under offer during the year so far.Office investment transaction volumes have remained relatively weak at around a third of the 10-ye

48、ar trend.Muted volumes reflectuncertainties around asset pricing,debt costs,and the potential for further interest rate movements.The latest data shows that equity targeting London is around 19.18bn,41%below trend levels.Driving lower investment turnover has been the relative illiquidity of larger l

49、ot sizes,leading to a fall in average deal size.Within the Central London market,the average deal size has fallen from 88m in 2018 to 28m now.Just two deals larger than 100m transacted across the UK during Q1 2024,compared to the five-year average of nine per quarter.Prime yields remain unchanged so

50、 far this year in 6 of the 11 UK office markets we track.However,in the other markets,yields continued to move outwards by between 25-50bps.So far this yearFigure 2:Central London office investment transactions by size band and average lot Source:CBRE88m49m28m0102030405060708090100050100150200250300

51、35020142015201620172018201920202021202220232024 H1mNumber of transactions25m25-50m50-100m100m+Average deal size(RHS)15CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKOFFICE There is 9.1m sq ft of office development currently under construction in the UK which could c

52、omplete this year.If these come to fruition,this years completions will exceed average levels.The Central London market accounts for nearly 60%of this upcoming development space.Despite the high level of completions expected,increased occupier demand for high-quality space will cause this space to b

53、e absorbed quickly.Asa result,40%of the UK under construction pipeline to 2028 is already pre-let or under offer.The proportion of pre-let space varies by market and is as high as 63%in the City of London and 42%in Leeds.We do not expect construction starts to maintain their recent pace due to high

54、debt and construction costs,and an increasingly challenging planning environment.Therefore,weexpect lower levelsof development completions after 2025.In the longer term,we anticipate a higher propensity for refurbishments and material re-usein construction to sustainably regenerate obsolete stock.We

55、also expect more buyers to transact with an intention to repurposeoffices.Broader sentiment and investment activity will be boosted by a cut in interest rates and stabilising yields.Following repricing,the market could see an increase in core investment purchases as returns become more attractive.Th

56、e key geographies with capital targeting London are Europe(34%)and East Asia(25%).All Asian capital accounted for 40%of the total equity targeting the market.In the markets we forecast,we expect prime yields to remain relatively flat for the remainder of this year.Whats still to come0.02.04.06.08.01

57、0.012.014.02016201720182019202020212022202320242025202620272028Million sq ftCompletedU/C Let/Under OfferU/C Available10-year average completionsFigure 3:UK office developments,under construction pipelineSource:CBREIndustrial&Logistics17CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Marke

58、t Outlook 2024|UKINDUSTRIAL&LOGISTICS Take-up started slowly this year but caught up in Q2.This said,there is still some caution in the market,with deals taking longer to complete.Demand continues to be led by third-party logistics operators,contributinga third of all take-up.Manufacturing occupiers

59、 also remain active,accounting for over a quarter of take-up in the first half of 2024.The latest CBRE vacancy rate now stands at 5.75%.In prior quarters the vacancy rise was largely driven by new speculative completions,but in Q2 the increase was led by a return of secondhand units to market.The de

60、velopment pipeline continues to moderate.Around 19m sq ft of new space is currently under construction,45%below the same time last year.Prime rents have grown in most regions in the first half of the year,excluding Inner South East,South West and Scotland.However,the rate of growth has slowed.In the

61、 12 months to Q2 2024,the UKs prime rent*grew by 7.8%,below the prior year(16.3%).In Q1 2024 investment volumes increased year-on-year,however this was from a low base.Volumes remain below the preceding 10-year average,and investors continue to be selective in their target acquisitions.Withlimited m

62、ovement seen in the debt market,the prime big box logistic yield has remained stable at 5.25%.So far this yearFigure 5:UK I&L Vacancy RateSource:CBREFigure 6:UK I&L Under Construction Pipeline0%1%2%3%4%5%6%Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 202401020304050Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 202

63、4Million sq ftSpeculativeBuilt-to-Suit*Weighted by capital value18CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKINDUSTRIAL&LOGISTICS Occupier demand is expected to remain stable throughout the rest of 2024,with third-party logistics operators and manufacturers cont

64、inuing to have the greatest requirements.Outside of these sectors,some additional demand will be generated by retailers looking to expand or modernise their warehouse networks.In the medium-term,the outlook for demand is more positive,according to CBREs 2024 European Logistics Occupier Survey,58%of

65、occupiers plan to expand in the next three years.We anticipate vacancy rates will continue to rise across all UK regions.However,by the end of the year the average UK vacancy rate is likely to remain below the 10-year pre-pandemic average.The continued slowdownof the development pipeline will furthe

66、r help the sectors supplyand demand dynamics.Prime rents are expected to continue to grow in the second half of the year.Assets which offer strong sustainability credentials,and a good provision of power supply,are likely to outperform others,as these factors become increasingly important to the occ

67、upier.Full year investment volumes are expected to be on par or marginally ahead of last year.Although more stock is being brought to market,this is from a very low base.And with availability remaining constrained,investors willincreasingly consider assets with a broader range of lease structures.Wh

68、ilein recent months assets offering reversionary potential were the target of many investors,with more muted occupier performance,stable income assets such as long-term leases or index-linked leases are becoming more attractive.Despite an increase in activity,until debt costs reduce more meaningfull

69、y,pricing is expected to remain largely unchanged.Whats still to comeRetail20CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKRETAIL Consumer confidence has continued to improve in the first half of the year.The latest data was 10 points higher than the same time last

70、 year.Encouragingly,consumers are feeling more optimistic about their own personal finances in the next 12 months.Sales volumes have begun to show signs of improvement in the latest months data,up 1.2%year-on-year.However,they remain below pre-pandemic levels.This suggests that although consumers fe

71、el better about their personal finances,their spending remains cautious.The proportion of sales transacted online has remained in line with 2023.Occupiers continue to focus on delivering a seamless omnichannel experience.For example,Primark recently announced plans to expand its Click&Collect servic

72、e to all UK stores by the end of 2025.The number of store openings and closures stayed in balance so far this year,and the all-retail vacancy rate held at 11.7%.Retail Parks remain the most popular among occupiers and the sub-sectors vacancy rate continues to compress,with prime parks sub 2%.This sa

73、id,the Shopping Centre vacancy rate also saw some improvement in Q1 2024,reaching its lowest level since 2020.Some of Central Londons key streets now have low levels of availability,whichhas created competitive tension and driven rental growth.With improving levels of investor interest,the prime Ret

74、ail Park yield has sharpened by 25 bps.Meanwhile High Street and Shopping Centre yields have remained stable.The first half of the year has delivered some significant transactions such as Norges purchase of Meadowhalls remaining stake,which gained good interest from multiple bids.However,transaction

75、al activity has been largely limited to off-market deals,and this shortage of supply has led to relatively subdued volumes overall.So far this year(60)(50)(40)(30)(20)(10)0Jan-22Feb-22Mar-22Apr-22May-22Jun-22Jul-22Aug-22Sep-22Oct-22Nov-22Dec-22Jan-23Feb-23Mar-23Apr-23May-23Jun-23Jul-23Aug-23Sep-23Oc

76、t-23Nov-23Dec-23Jan-24Feb-24Mar-24Apr-24May-24Jun-24Source:ONSFigure 7:UK Consumer Confidence IndexFigure 8:UK all retailing sales volumes(excl fuel),year-on-year%change-10%-8%-6%-4%-2%0%2%4%6%8%10%Jan-22Feb-22Mar-22Apr-22May-22Jun-22Jul-22Aug-22Sep-22Oct-22Nov-22Dec-22Jan-23Feb-23Mar-23Apr-23May-23

77、Jun-23Jul-23Aug-23Sep-23Oct-23Nov-23Dec-23Jan-24Feb-24Mar-24Apr-24May-24Source:GfK21CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKRETAIL In the second half of the year the economic backdropwill continue to improve.The current path of inflation,coupled with the firs

78、t base rate cut from the Bank of England,will help support the continued recovery of consumer confidence.Retail sales volumes are expected to remain ahead of last year in H2 2024.This said,consumers remain cautious around big-ticket item spending,so we expect the sales uptick will be moderate.The ba

79、lance of sales between in-store and online will remain broadly consistent with H1 2024.Outside of the limited number of high-profile examples such as Ted Baker or The Body Shop,there is currently little evidence of distress in the occupier market.Though we will continue to see cases of portfolio rep

80、ositions,the vacancy rate will remain broadly stable in H2 2024.Occupiers that are on the expansion trail will continue to focus on high footfall locations that help to build brand profile and deliver strong consumer experience,or easily accessible locations that help to fulfil onlineorders.As such,

81、the vacancy rates and rental growth of major cities such as London,prime shopping centres and retail parks will continue to outperform with some now at pre-pandemic levels.Investor sentiment was relatively positive in H1 2024,and we expect this to continue in the second half of the year.The forecast

82、 base rate cuts could lead to improved pricing for some retail sub-sectors namely Retail Parks,and this should result in a greater number of sales coming to market in H2 2024.Though investor confidence on Shopping Centre performance has improved,and institutional investors are starting to return to

83、the market for prime assets,availability of stock will remain a limiting factor of investment into the sub-sector.Whats still to comeResidential23CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKRESIDENTIAL The sales market improved at that start of 2024,with mortgage

84、 approvals up 30%so far this year,compared with the same period of 2023.House prices also rebounded.At the time of writing,the Nationwide House Price Index showedannual house price growth of 1.5%.The ONS also reported positive annual house price movement,of 1.1%.In contrast to the sales market,the r

85、ental market has been more muted compared with 2023,with the pace of rental growth slowing.The rate of annual rental inflation across the UK(as recorded by the ONS)had increased for 33 consecutive months,but fell for the first time in April,to 8.9%.At the time of writing,it had slowed further to 8.7

86、%.Similarly,HomeLet,(which track rental changes on new tenancies),reported annual growth of 7.7%,at the time of writing.This was the lowest growth rate since August 2021 and down from a peak of 11.1%in November 2022.This deceleration reflects lower inflation combined with affordability constraints,w

87、ith tenants unable to afford higher rents in the current market.This has led to falling demand and a lower rate of growth.CBREs latest Multifamily Index continued to track strong performance in the Build-to-Rent sector.However,residential investment has been muted so far in 2024,with volumes down 15

88、%in Q1 compared with the same period of 2023.But positively,values have broadly stabilised,meaning yields have remained flat.Albeit the recent abolition of Multiple Dwellings Relief(MDR)could negatively impact values in certain instances.So far this year Figure 9:Mortgage approvals and house price g

89、rowth,UKSource:RICS,ONSFigure 10:Net demand and change in rents,England and WalesSource:Bank of England,ONS,Nationwide0.02.04.06.08.010.0020406080100Jan-20Mar-20May-20Jul-20Sep-20Nov-20Jan-21Mar-21May-21Jul-21Sep-21Nov-21Jan-22Mar-22May-22Jul-22Sep-22Nov-22Jan-23Mar-23May-23Jul-23Sep-23Nov-23Jan-24M

90、ar-24May-24Net demand%,LHSAnnual change in rents%,RHS-10-505101520020,00040,00060,00080,000100,000120,000Jan-20Mar-20May-20Jul-20Sep-20Nov-20Jan-21Mar-21May-21Jul-21Sep-21Nov-21Jan-22Mar-22May-22Jul-22Sep-22Nov-22Jan-23Mar-23May-23Jul-23Sep-23Nov-23Jan-24Mar-24May-24Mortgage approvals,LHSHouse price

91、 change%pa(ONS),RHSHouse price change%pa(Nationwide),RHS24CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKRESIDENTIAL Renewed uncertainty around the future path of interest rates has dampened sentiment most recently.However,we expect this to be a temporary lull and o

92、ur outlook for the sales market remains broadly positive.Mortgage rates will be the main determinant of activity for the remainder of the year.These have risen recently but are still well below their peak of last summer.We continue to forecast an initial base rate cut in Q3 2024,which could be a fil

93、lip for homebuyers and the residential investment market.We forecast UK house prices to increase by 1%in 2024 and for sales volumes to recover by 10%.Both measures have been upgraded from our previous forecast made at the end of last year.We do not expect Labours planned 1%additional stamp duty surc

94、harge on non-UK resident buyers to have a material impact on overseas buyer demand.However,the continuation of the Mortgage Guarantee Scheme is positive news for first-time buyers.Tenant affordability will dictate the pace of rental growth for the remainder of the year,but this will take time to fee

95、d through.As a result,we expect the rate of rental growth to continue to slow but remain strong in 2024,at 6.4%.Investment into Build-to-Rent will continue to face challenges common to other residential sectors,including higher financing costs and the recent abolition of MDR.However,a robust under o

96、ffer pipeline means we are cautiously optimistic that investment will pick-up throughout the remainder of 2024,particularly if interest rates fall as expected.Whats still to come Figure 11:Two-year fixed mortgage rate and Bank of England base rate(%)Source:HomeLetFigure 12:Proportion of income spent

97、 on rentSource:Bank of England25%29%33%37%41%Jan-20Mar-20May-20Jul-20Sep-20Nov-20Jan-21Mar-21May-21Jul-21Sep-21Nov-21Jan-22Mar-22May-22Jul-22Sep-22Nov-22Jan-23Mar-23May-23Jul-23Sep-23Nov-23Jan-24Mar-24May-24UK excluding LondonGreater London012345678Jan-20Mar-20May-20Jul-20Sep-20Nov-20Jan-21Mar-21May

98、-21Jul-21Sep-21Nov-21Jan-22Mar-22May-22Jul-22Sep-22Nov-22Jan-23Mar-23May-23Jul-23Sep-23Nov-23Jan-24Mar-24May-2495%LTV85%LTVBank of England Base RateAffordable Housing26CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKAFFORDABLE HOUSING There has been an increase in th

99、e number of transactions across the affordable housing sector at the start of 2024,both for stock transfers and s.106 opportunities.The stock rationalisation market has also been particularly buoyant this year,with a significant increase in the size of the portfolios and total number of units traded

100、.In addition,more for-profit Registered Providers(RPs)are now becoming active in this segment of the market which has traditionally been the reserve of the not-for-profitproviders.There has also been more development transactions so far in 2024.Most recently,Edmund de Rothschild Real Estate Investme

101、nt Management bought a 34m residential development opportunity in Newbury.It is understood that this will form part of its affordable housing fund.So far this year Other notable transactions have included M&G acquiring three stabilised portfolios totalling 370 properties from Hyde,CHP.In addition,Pa

102、rk Properties(HSPG),MTD(William Pears)acquired 458 homes from A2Dominion,and New Arch(Octopus Real Estate)purchased 180 homes from Golding Homes.There has also been renewed interest in establishing new RPs and the trading of RP entities.For example,Rosewood(a for-profit RP owned by Inland Homes)was

103、recently traded to Thriving Investments,a fund manager operated by Places for People.Additionally,Quartz Housing Limited(a subsidiary of Civitas Investment Management)recently achieved RP status with the Regulator of Social Housing.Yields for some affordable tenure types,particularly rented,continue

104、d to soften at the start of the year.However,the rate which they moved out was slower compared with 2023.27CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKAFFORDABLE HOUSING Activity in the sector is rebounding.With renewed interest from investors,and confidence from

105、 a broad stabilisation of values,its likely that investment will pick-up in the second half of 2024.The stock rationalisation market will remain particularly active.Many RPs are reviewing their business strategies with disposals of existing stock being increasingly considered as an option,with both

106、for-profit and not-for-profit providers active in this segment.However,investment,particularly for development opportunities,willlikelybe predominantly driven by for-profit RPs,which are still a minority participant in the overall affordable housing sector.Many of the traditional providers will stil

107、l need to concentrate on upgrading their existing portfolios.As a result,the G15 group of Londonhousing associations confirmed that its members are reducing their development programmes by up to a third.This will be replicated across the country,translating into a reduction in the development pipeli

108、ne and delivery ofnew affordable homes.The 2023/24 rental cap will continue to impact the finances of many housing associations.It is forecasted that this will result in an overalllossof 3.2bn in rental income,which is further dampening investment appetite.In contrast,the lifting of the Local Housin

109、g Allowance Freeze in April 2024 will have a positive impact on the sector.Still,whilechallenges remain,the strong start to the year is encouraging and current momentum means we maintain a positive outlook for the remainder of 2024.Whats still to comePurpose-Built Student Accommodation(PBSA)29CBRE R

110、ESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKPURPOSE-BUILT STUDENT ACCOMMODATION Demand for higher education remains robust,with 2024/25 applications(as at the January application deadline)to the University and Colleges ApplicationService(UCAS)broadly level with 2023/24

111、.UK domestic applicants were stable,and demand from non-EU international students was strong.In contrast,applications from EU international students fell 3%year-on-year.In its May report,the Migration Advisory Committee concluded that there was no evidence of abuse of Study and Graduate Immigration

112、Visas by international students from India,Nigeria,China,and Pakistan.As a result,the Government backtracked on its plan to restrict graduate visas.Its now unlikely that any additional regulation will be introduced for international students until at least the next academic year.Relative to the star

113、t of 2023,investment into PBSA has been strong so far in 2024.The sector has attracted 2.1bn of investment year-to-date,almost three times higher than the same period of 2023.Investment volumes in H1 2024 wereboosted by Mapletrees 1bn acquisition of an 8,200-bed portfolio located in the UK and Germa

114、ny.In addition,Unite sold a 3,000-bed portfolio to PGIM for 184m.So far this year,there have been six transactions that have exceeded 100m,compared with just one in the same period of 2023.A higher degree of due diligence has continued to delay some transactions this year,particularly in relation to

115、 building safety.Nevertheless,current investment continues to highlight strong demand for student accommodation.Like the previous cycle,expectations for strong rent growth and total returns have counteracted any potential yield movement.As a result,yields have remainedstable across the sector so far

116、 in 2024.So far this year-80%-60%-40%-20%0%20%40%60%20192020202120222023%Change from 2019/20UKNot EUEU(excluding UK)Figure 13:2024/25 UCAS undergraduate applications by domicile Source:CBRESource:UCAS01,0002,0003,0004,0005,0006,0007,0008,0002015201620172018201920202021202220232024Portfolio HeadlineS

117、ingle AssetFigure 14:PBSA investment volumes(millions),UK30CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKPURPOSE-BUILT STUDENT ACCOMMODATION Supply will remain constrained,and low,compared with previous years.This will continue to be compounded by the falling numbe

118、r of Homes for Multiple Occupation,as private landlords leave the sector.Viability will remain challenging and impacted by building safety requirements,sustainability measures,and higher debt costs.Rental growth for the 2024/25 lettings cycle looks strong.At the headline level,advertised rents for P

119、BSA are 14%higher than the previous cycle.On balance,we expect actual rent growth of 5-10%for this cycle.However,while this growth is positive for investors and developers,it contrasts with the below inflation increase to the maintenance loan(ofjust 2.4%).This means that many domestic students could

120、 be priced out of some of the PBSA market,whichcould impact overall demand and let-up across this lettings cycle.The abolition of Multiple Dwellings Relief(MDR)came into effect on 1 June.As a result,some properties could be exposed to a 4%rise in stamp duty,which could impact pricing of some transac

121、tions throughout the remainder of 2024.Overall,deal activity is expected to increase in the second half of 2024.However,the MDR abolition and higher debt costs willcontinue to impact activity,and cash buyers will maintain their advantage in the current market.Demand will remain strongest for assets

122、with limited safety issues and strong sustainability credentials.Whats still to comeOperational Real EstateHotels33CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKHOTELS 2023 saw a subdued investment market in which a number of transactions failed to conclude.While t

123、he anticipated interest rate cuts in H1 2024 did not materialise,the debt markets stabilised,providing investors increased confidence that correctly priced assets would trade successfully.This can be evidenced in a number of CBRE sales processes where the bid-ask spread contracted,with investors re-

124、entering the market for the first time since 2019.Hotels across the UK have benefitted from significant growth in Average Daily Rate(ADR)+27%vs 2019 and strong occupancies,resulting in substantial Revenue per Available Room(RevPAR)performance.Looking ahead to the second half of 2024,it is expected t

125、hat ADR growth will be moderate versus when compared to prior year.This is reflective of the UKs inflationary environment impacting domestic leisure spend,in addition to a prolonged return of the international tourism markets.High levels of inflation continue to challenge departmental profitability

126、most notably in payroll,further impacted by a lack of skilled workforce.With the backdrop of moderate revenue growth and cost increases,GOP conversion remains stable with operators now focusing on occupancy to grow profitability.Anupcoming challenge is the anticipated business rates revaluation in A

127、pril 2026.So far this year Figure 15:CBRE house yieldsSource:CBRE3.00%3.50%4.00%4.50%5.00%5.50%6.00%6.50%7.00%7.50%8.00%Jan-19 Jun-19 Nov-19 Apr-20 Sep-20 Feb-21Jul-21Dec-21 May-22 Oct-22 Mar-23 Aug-23 Jan-24 Jun-24London Upscale(VP)Provincial Upscale(VP)London Prime Cov LeaseProvincial Prime Cov Le

128、ase34CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKHOTELS There has been strong demand for domestic leisure destinations,whichhas particularly benefitted regional UK areas including coastal towns.But pressures on household disposable income could lead to a slight c

129、ooling in domestic leisure demand.The pickup in international overnight visits across the UK has benefited the hotel sector significantly.We expect this trend to continue,with levels expected to exceed 2019 volumes.Growthin tourism numbers to London will further cement its reputation as a global des

130、tination for business,entertainment,and events.Following strengthened investor sentiment,2024 volumes have already exceededthat of full year 2023,with c.2.4bn of transactions recorded vs c.2bnlast year.Weforecast year-end 2024 volumes to exceed 4.5bn,reflective of some of the large hotel portfolios

131、that have sold and are live in the market including ADIAs Marriott Portfolio(900m),together with some significant single asset transactions.As operators realise the impact technology can play in hotel operations,it is likely to play a central role in the customer travel experience.With artificial in

132、telligence(AI)consistently improvingand becoming more prevalent,it has the possibility to improve the personalisation of customers experience.For instance,online bookings would recognise the guests preferences for their stay and propose suitable room suggestions.Guest check-in could become more pers

133、onal too,with staff already having knowledge of guest hospitality preferences.Whats still to come 0123456789102015201620172018201920202021202220232024Investment Volumes(bn)LondonProvincialForecastSource:CBREFigure 16:Hotel investment volumes(bn),UKLeisure&Pubs36CBRE RESEARCH 2024 CBRE,INC.Intelligen

134、t InvestmentMid Year Market Outlook 2024|UKLEISURE&PUBS There was a robust surge for pubs over the Christmas period,with the first year-on-year volume as well as price increase,since early 2023.However,the first quarter of the year saw a reduction in customer occasions due to pricingincreases.Costs

135、pressures persist and many cinema operators are struggling with occupancy levels which remain low.The actors and writers strike has meant many film releasespreviously salted for 2024 have been postponed until 2025.So far this year37CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Ou

136、tlook 2024|UKLEISURE&PUBS As ever,the advent of better weather benefits pubs with outside space.Even those with TVs but no garden,should benefit proportionally as England(and to a lesser degree Scotlands)progress in the Euro 2024 competition.We have started to see increased corporate and investment

137、activity in pubs as sellers have recognised that margins and profitability have been erodedand have repricedaccordingly.The cinema market continues to be challenging for most operators.Even with corporate restructuring,high debt levels and lower attendance mean that rentals are often only at sustain

138、able levels.Moreover,cinema audience numbers willimprove but only if studios make product available.It is anticipated the market will still be weak as we progress through 2024,but with the improving film slate and more parties entering the sector,an element of price compression may occur by 2025.Imp

139、roved liquidity and falling base rates later in 2024 will likely lead to an uptick in activity.Whats still to comeHealthcare39CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKHEALTHCARE Healthcare investment activity has started to return in 2024,with volumes so far d

140、ouble the same period in 2023.The return has beendriven by a reduction in the bid-ask spread for healthcare investment opportunities.Moreover,when marketing healthcare opportunities in 2024,CBRE have received a higher number of bids from a wider range of investors than in 2023.This increased investo

141、r appetite for healthcare reflects the sectors attractive lease features,strong underlying operational performance and the ability to make a positive social impact.So far this year40CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKHEALTHCARE The flight to quality for

142、healthcare assets will continue and we are already seeing materially increased demand for value-add assets with a number of large-scale elderly care opportunities currently in the market.While elderly care remains an active segment of the market,there has been a surge in private hospital investment

143、activity,and weexpect this to continue following the refinancing of Medical Properties Trust and multiple investment opportunities in this sector of the market.Whats still to comeSenior Living42CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKSENIOR LIVING The sale of

144、 new homes in 2024 have been steady,but subdued,reflecting the challenges in the wider residential market.Many prospective buyers of homes in senior living schemes are struggling to quickly sell their current property.Typically,buyers are selling a property worth 12m,a price range currently experien

145、cing a bottleneck in the residential market.As a result,operators are increasingly seeing long reservationperiods.Still,there are differences across the sector.Operators are noting that re-sales in more mature and established villages are outperforming new build sales.This resilience emphasises the

146、importance of building a community within the overall complex.So far this year High construction costs and land constraints have led to muted levels of completions over the past year,with limited new units coming to the market through 2024.Given the difficulties surrounding viability,operators have

147、been looking to capitalise on larger regeneration schemes,such as Audleys commitment to the wider Brent Cross masterplan.43CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKSENIOR LIVING A general improvement in the economic backdrop,especially expected reductions in i

148、nterest rates,is likely to boost activity in the wider residentialmarket.This should feed through to the senior living market,thereby reducing reservation timings,and increase sales in new villages.Affordability will be a key driver for the sector if more schemes are developed for a mid-market offer

149、ing,while a lack of consented and deliverable schemes may also impact immediate investment.The Leasehold and Freehold Reform Bill provided some certainty around the structure of Deferred Management Fees.This should assure investors about the security of income going forward.More operators are offeri

150、ng a rental option as a key investment decision,rather than as an after-thought in driving occupancy.Given the success of existing rental products and continued rental growth,we expect this trend to continue with a greater focus on dedicated and purpose-built rental provision and platforms.The Older

151、 Peoples Housing Taskforce have submitted their final paper with recommendations and highlight the senior living market as having a key role in unlocking the wider housing crisis.Should Labour take the recommendations forward,it could further stimulate growth into the sector.Whats still to comeRoads

152、ide&Automotive45CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKROADSIDE&AUTOMOTIVE In the operational Petrol Filling Station(PFS)market,demand from purchasers has remainedstrong.This has been driven by high fuel margins and a drive to secure future proofed sites sui

153、table for electric vehicle charging,combined with a more traditional petroleum&convenience offer.In the investment market,PFS transaction volumes have remained relatively weak with a lower-than-average number of transactions in the sector.Average net initial yields have moved out 149bps since 2022,w

154、hile average fuel margins for operators have increased.Vacant Possession values have held despite the challenging investment climate.So far this year In April 2024,Group 1 Automotive Inc,announced that it had entered into a definitive agreement to acquire Inchcape plc.This is the latest takeover in

155、the UK car dealership market following other high-profile takeovers including:Lithias acquisition of Jardine Motors;Sytners acquisition of Rybrook;Lookers selling to Global Auto Holdings and Constellation Automotives acquisition of Marshall.Vacant possession transactions in the car showroom sector h

156、ave primarily been driven by Cazoo entering administration in May 2024.Cazoo sold five leasehold sites to companies that form part of the Constellation Automotive Group.In the car showroom market,prime yields have moved out by 50bps since 2022.The outlook is improving,although transactions have not

157、recovered to pre-2022 levels.In H1 2024,the number of electric cars now on UK roads reached one million for the first time.46CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKROADSIDE&AUTOMOTIVE The remainder of 2024 could see more platform sales as owners assess their

158、 portfolio strategies amid the growing adoption of electric vehicles.Operator mergers are also likely to continue as operational value in the sector remainsstrong.Transaction demand will remain for high quality core assets.The adoption of a dual-fuel strategy will continue to drive demand for larger

159、 plot sizes in the PFS sector.There have been very few car park investment transactions in the last 12 months.We anticipate activity in this sector will increase in H2 2024.Despite the economic and political headwinds,operators in the PFS market continue to perform well and we expect investor appeti

160、te to returnfor well-located assets that are EV ready and backed by strongtenant covenants.CBRE research indicates that average annual returns are 377bps higher than the long-term average if you invest at the trough of the market across all property types.H2 2024 is likely to present investors with

161、opportunities to acquire long-term strategic assets.Whats still to comeSelf Storage48CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKSELF STORAGE The self storage sector remains a strongpreferencefor major investors,with operators remaining committed to scaling their

162、 existing businesses via organic growth or inorganic acquisitions.2024 investment volumes have already surpassed previous levels.Notable deals include the shareholder approved cash purchase of AIM listed LoknStore for 378M.Debt remains a key underwritingconsideration.So far this year Occupancy has d

163、ropped over the last 12 months and demand has now normalised following exceptional performance during the post-pandemic period.However,the slight decline in occupancy has been more than offset by the growth in rental rates,leading to an increase in both revenues and bottom-line.Operators have seenst

164、rong demand in the lead up to the summer,and there is a belief that we have reached an inflection point in the market.49CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKSELF STORAGE If mortgage rates remain high in H2 2024,it will impact thosehouseholds that need to r

165、enew their mortgage.This willcontinue to be a driver of demand for self storage as people undertake conversions,de-clutter,and need help with issues caused by their inability to move to a suitable living environment.Yields have compressed as the reputation and understanding of the sector has grown f

166、or both customers and investors.Heading into H2 2024,the self storage sector is expected to continue to receive interest frominvestors seeking to benefit from a robust trading environment.Operators remain optimistic despite the recentsoftening residential market and the cost of living crisis.Whats s

167、till to comeData Centres51CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKDATA CENTRES Available data centre capacity in London has plummeted this year as providers struggle to keep pace with strong demand.The most recent data show the London vacancy rate fell to an

168、all-time low of 11%.London represents about 80%of UK market supply.Higher rents havent deterred some of the worlds largest technology companies from buying data centre space as quickly as it has become available in London.Asa result,take-up rose to 42MW in the first quarter,compared to 17MW in the s

169、ame time period last year.So far this year Most of the space has beentaken up by hyperscalers wanting to expand their presence in London.This is partly a defence play they need to ensure they satisfy their data centreneeds,and to stop competitors accessing the limited space.Meanwhile,more businesses

170、 need to house the necessary equipment in colocation data centres that will help them deliver productivity gains or generate new revenue from digital services.However,providers are struggling to find the necessary resources required to build new data centres.Developers are often inhibited by a lack

171、of appropriate land in London with the requisite power,which is a critical element of any data centre operation.This issue is especially pronounced in the western corridor of the city.Land acquisition costs have risen as well,which makes the total cost of data centre ownership higher and project pro

172、fitability potentially harder to achieve.52CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKDATA CENTRES Due to the shortage of appropriate land and power for data centre purposes in London,developers are looking further afield for the land and power required to build

173、 and run data centres.Its more likely to find these resources in areas outside of London.Virtus,a London-based data centre provider,purchased land in Saunderton,north west of London,that it will use to develop specialised data centres on.Virtus aims to deliver 75MW of data centre supply for organisa

174、tions looking to deliver artificial intelligence(AI)services from colocation data centres.It is expected that companies looking to house equipment that powers AI services will drive unforeseen demand for data centre capacity in the UK.We expect deal size to grow in accordance with AI-specific requir

175、ements.London take-up in 2024 will rival the all-time high recorded in 2022,due largely to demand from hyperscalers,but also newer companies that require AI infrastructure.Due to the challenges faced by providers in meeting the demand for data centre capacity,take-up is expected to exceed supply for

176、 the third consecutive year in London.If our forecasts are accurate,London will experience its third consecutive supply-demand imbalance,with a delivery of 96MW of new supply and 130MW of take-up.Whats still to comeLife Sciences54CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outl

177、ook 2024|UKLIFE SCIENCES Take-up for life sciences companies in the first half of the year was modest at 130,000 sq ft.A low first half take up broadly correlates with historic trends,but it also reflects a lack of readily available lab space.A significant collaboration was announced in February bet

178、ween the Francis Crick Institute,BlackRock/Reef at Tribeca,and British Land at Regents Place to accommodate commercial companies working across AI/biotech and health,who are broadly aligned with the Institutes scientific goals.So far this year Specifically,the collaboration with British Land will pr

179、ovide 30,000 sq ft of fitted lab and write-up space at 20 Triton Square,Regents Place,as well as 52,000 sq ft at Reefs Tribeca development in Kings Cross.Venture capital funding appears to have stabilised and is projected to exceed 2023 levels.If these levels continue,it could potentially reach arou

180、nd 3.43bn,making it the third-largest year on record.However,deal activity in London has declined,which is notable given that London accounted for 50%of VC investments in 2023,but only 20%in the first half of 2024.55CBRE RESEARCH 2024 CBRE,INC.Intelligent InvestmentMid Year Market Outlook 2024|UKLIF

181、E SCIENCES The development pipeline for the rest of the year looks promising,with purpose-built lab spaces expected to be completed at Apex in London,Granta Park in Cambridge,and Nebula in Milton Park,Oxford.Outside the Golden Triangle,Bruntwood SciTechs Citylabs 4.0 in Manchester is also due for co

182、mpletion,as well as Birmingham Health Innovation Campus(BHIC).This growth of the sector in Manchester is further solidified by Kadans receiving planning permission for their Upper BrookStreet development.The investment market is anticipated to rebound.Following the partial sale of 1 Triton Square to

183、 Royal London,we observe signs of investors and developers shifting focus away from the delivery of projects.They are likely to seek new opportunities to deepen their investments in the sector or to exit their holdings upon project completion.We are beginning to witness the emergence of a two-tier m

184、arket for life sciences spaces,with both repurposed office spaces and purpose-built lab spaces becoming available.Both types will serve distinct purposes,with more affordable sites offering cash-conscious biotechs viable optionsfor relocation within strong ecosystems.The conclusion of the election a

185、dds a layer of certainty for foreign investors.Positively,Labour has outlined plans to increase government R&D spending as well as maintaining participation in the European Horizonscheme.Whats still to come Copyright 2024.All rights reserved.This report has been prepared in good faith,based on CBREs

186、 current anecdotal and evidence based views of the commercial real estate market.Although CBRE believes its views reflect market conditions on the date of this presentation,they are subject tosignificant uncertainties and contingencies,many of which are beyond CBREs control.In addition,many of CBREs

187、 views are opinion and/or projections based on CBREs subjective analyses of current market circumstances.Other firms may have different opinions,projections and analyses,andactual market conditions inthe future maycause CBREscurrent viewsto later beincorrect.CBREhasno obligation to update itsviewshe

188、reinifits opinions,projections,analyses ormarket circumstances laterchange.Nothing in this report should be construed as an indicator of the future performance of CBREs securities or of the performance of any other companys securities.You should not purchase or sell securitiesof CBRE or any other co

189、mpanybased on the views herein.CBRE disclaims all liability forsecurities purchased or sold based on information herein,and by viewing this report,you waive all claims against CBRE as well as against CBREs affiliates,officers,directors,employees,agents,advisers and representatives arising out of the

190、 accuracy,completeness,adequacy or your use of theinformationherein.Steven DevaneyDirector,UK RToby RadcliffeAssociate Director,UK Sustainability RSimon BrownSenior Director,Head of UK Office RJennet SiebritsHead of UK RRuth HolliesSenior Director,Head of European FDaniel JonesSenior Analyst,Economi

191、cs&FContactsMiranda BotcherbyDirector,Head of UK Industrial&Logistics and Retail RScott CabotDirector,Head of UK Residential RAlice MarwickDirector,Head of OPRE R Copyright 2024.All rights reserved.This report has been prepared in good faith,based on CBREs current anecdotal and evidence based views

192、of the commercial real estate market.Although CBRE believes its views reflect market conditions on the date of this presentation,they are subject tosignificant uncertainties and contingencies,many of which are beyond CBREs control.In addition,many of CBREs views are opinion and/or projections based

193、on CBREs subjective analyses of current market circumstances.Other firms may have different opinions,projections and analyses,andactual market conditions inthe future maycause CBREscurrent viewsto later beincorrect.CBREhasno obligation to update itsviewshereinifits opinions,projections,analyses orma

194、rket circumstances laterchange.Nothing in this report should be construed as an indicator of the future performance of CBREs securities or of the performance of any other companys securities.You should not purchase or sell securitiesof CBRE or any other companybased on the views herein.CBRE disclaim

195、s all liability forsecurities purchased or sold based on information herein,and by viewing this report,you waive all claims against CBRE as well as against CBREs affiliates,officers,directors,employees,agents,advisers and representatives arising out of the accuracy,completeness,adequacy or your use

196、of theinformationherein.Andrew JayHead of Data Centre Solutions,Advisory&Transaction Services,EJoanne HendersonExecutive Director,Head of Life Sciences,Europe Kevin RestivoHead of Data Centre Research,Advisory&Transaction Services,Europe Richard DakinEurope Head,Investment Banking and Debt&Structure

197、d FTom MorganExecutive Director,OPRE,Healthcare,UKMiles AugerHead of UK HSarah LivingstonExecutive Director,OPRE,Healthcare,UKTom KingExecutive Director,OPRE,Leisure,UKOliver CloseSenior Director,Self Storage,OPRE,UKContactsLuke MillsManaging Director,UK RAndrew SaundersonExecutive DirectorHead of U

198、K Residential Capital MJustin CartyExecutive Director,Affordable Housing,UK Thomas Mudd Senior Director,Affordable Housing,UK Oli Buckland Executive Director,Residential Capital Markets,UK Colin ThomassonHead of UK Investment PKaela Fenn-SmithManaging Director,ESG Consultancy,UK&IRichard SmartManaging Director,LPaul FarrowExecutive Director,Head of UK Industrial&LGraham BarrHead of UK R