Regional cities grab 36% of CRE investment

MIPIM 2017: Large regional cities grabbed more than a third of regional commercial real estate investment last year – the highest levels for three years. Major UK cities accounted for 36% of CRE investment as they grow in dominance, commanding an increasing share of occupational activity and investment interest, according to EG research featured in the UK Cities Investor Guide, launched today. That trend is most prevalent in the North West and Yorkshire cluster of major cities, wherein Liverpool, Manchester, Sheffield and Leeds between them accounted for 61% of the region’s total commercial investment – up from 39% in 2013. This trend is mirrored on the occupational side of commercial property, with the 14 cities taking 30% of all office and retail space let last year, reflecting a shallower rise than the investment share, coming up from 28% in 2013. In Scotland, Glasgow and Edinburgh commanded the lion’s share of letting activity north of the border, accounting for 75% of all office and retail space transacted in 2016 – up from 54% in 2013. In essence, these cities took a larger slice of a smaller pie, as activity slowed across the board for UK commercial real estate in 2016. As governmental focus on improving connectivity and collaboration between major cities intensifies, this trend is likely to increase in the coming years as regional hubs look to harness their individual and collective strength to remain resilient in the face of accelerating change. Click here for all the news, views and analysis from MIPIM 2017 To send feedback, e-mail graham.shone@egi.co.uk or tweet @GShoneEG or @estatesgazette