Good morning. Here’s your daily round-up of the latest news and views from EG and a collection of industry-relevant headlines from the nationals, all perfectly curated to set you up for the week ahead.
The summer season may now be officially upon us as we drift into August, but there is no slowdown in the news just yet. There is a busy week ahead for property companies reporting on trading for the first six months of the year, with flex giant IWG, office specialist Derwent London, industrial REIT Tritax Big Box and beds investor Irish Residential REIT all publishing interim results.
Today, NewRiver REIT, Regional REIT and Midlands-based REI updated on trading with all having positive outlooks for the remainder of the year. Both NewRiver and Regional REIT boasted rental agreements above ERVs, while REI is confident it will be able to sell some of its bigger assets as it works to pay down its debt now interest rates have nudged down.
Later this week the last of the big listed global advisers will reveal how active they have been so far in 2024, with JLL and Savills both set to update. Consensus among the agents is that the tide is turning and capital markets activity is back on the rise. Expectations that the floodgates holding back a great wall of capital are about to open get stronger with each announcement.
Barry Gosin, chief executive of Newmark, which last week reported a 14.5% increase in revenue from its capital markets division in the three months ended 30 June and a 6.6% increase in total revenue to $1.2bn in the first six months of the year, said the sector had now passed the inflection point.
“We hit the trough,” he said. “We are on our way to better times. Interest rates have stabilised. The ecosystem is designed to buy property. The whole industry that is there to invest dry powder are starting to feel better about the opportunities.”
This month’s EG Dealmaker Harry James of The Workplace Company mostly agrees that things are changing for the better. After a strong Q1 and a tough Q2 in the London office leasing market, he is hopeful a recent change of government could get momentum going again.
“One of the key things with office space in central London is that we need momentum and for the last three or four months there has always been a hurdle, whether it’s been a strike, school holidays, the election,” he says. “We need momentum. We want people to enjoy their summer holidays, come back and let’s enjoy a good run until the end of the year potentially without some of these interferences.”
And if you’re looking for a little more positivity, why not tune into the latest EG Property Podcast. In the latest episode we speak with three women from across the property sector about the PedElle and why the cycle event is about so much more than pedalling. Listen in to find out why taking part in – or supporting – the ride could not only boost your career, but change your life.
All of the news from EG, plus a selection of headlines from the nationals:
REI continues sale plan for debt reduction strategy
NewRiver boasts ‘strong operational performance’
Home REIT income falls 72% as sell off ramps up
Rents up 11% against ERV at Regional REIT
Record resi auction for Allsop
EG’s news agenda: What to look out for this week
Agency leaders call trough as interest rates fall
Companies’ hunger for hybrid working continues to grow
PedElle Power: Why women’s cycling in real estate will boost your career and change your life
Obstacle course: How a top London agent keeps office lettings coming
Hackney planners object to Bishopsgate Goodsyard redevelopment
Trilogy secures record rent at Docklands block
COMMENT: What the Labour government means for renewables
PLP makes Super Smart deal in Staffordshire
BNP Paribas to buy AXA IM in €5bn deal
Cushman sells ‘non-core’ site maintenance business
Labour urged to inject £27bn to kick-start growth (£)
Labour plots fresh war on landlords (£)
Labour faces tough task in winning community support for building boom (£)
Where are the builders to hit Labour’s target of 370,000 new homes a year? (£)
The tiny village eyed by Labour as site for ‘city larger than Oxford’ (£)
Scotland property investment boom continues as Manchester climbs rankings
Chicken chain Wingstop fires up sale of British operation
Send feedback to Samantha McClary
Follow Estates Gazette
