Retail property investors will have to focus on active asset management if they want to prosper this year, according to Jones Lang LaSalle.
Vince Prior, European director in retail consulting at JLL, said the expectation of slower rental growth, which correlates with consumer spending, and capital appreciation this year would mean that investors who were going to perform this year would have to be active asset managers.
JLL’s international director in retail investment, Robin Coady, added: “A slowdown in growth will make it even more important to pick the winning retailers and locations. The retail sector is, however, still expected to deliver leading performance versus other property asset classes in 2005.”
JLL’s comments came as it reported that Christmas retail sales were much more positive than reported, with 66% of the 60+ retailers reporting Christmas trading results, posting increases in like-for-like sales in 2004. It said this figure was only marginally lower than the 75% that recorded an increase in 2003.
References: EGi News 28/01/05
