Businesses can look forward to a period of increasing confidence entering 2018 according to the latest report by specialist business property adviser, Christie & Co.
In their Business Outlook 2018 report, Christie & Co identifies the sectors that benefitted from activity fuelled, in part, by the availability of finance and a surge of investors, many from outside the UK, looking for good opportunities and strong returns.
The continued uncertainty surrounding Brexit has made its impact across all sectors, but the UK has also welcomed a spike in tourism and a surge of foreign capital into the UK market. Asian investors particularly view the UK as an attractive investment opportunity thanks to the country’s stability and relatively low value of the Pound.
Looking forward, Christie & Co remains increasingly confident in its sectors. The Business Outlook 2018 report expects further consolidation as pressures on costs continue, but this will prompt a shift towards embracing change, as technology and innovation evolve alongside the UK’s strengthening economy.
Average prices remained economically positive throughout 2017 across almost every sector in which Christie & Co specialises. These are as follows:
Dental: + 12.3%
Pharmacy: + 8.1%
Care: + 6.1%
Childcare: + 10.8%
Retail: – 0.4%
Pubs: + 3.8%
Restaurants: – 3.4%
Hotels: + 5.8%
Steve Rodell, Managing Director – Retail at Christie & Co comments, “Although the aggregate price of retail businesses is marginally down, the number of retail businesses sold increased considerably by 29% in 2017 as compared to the previous year. Forecourts experienced very high demand from a wide variety of buyers with an appetite for good quality site. Properties with healthy fuel margins and growing convenience operations ensured strong market prices throughout 2017 – a trend likely to continue well into 2018.
“While independent operators own 68% of petrol stations in the UK, supermarkets remain the largest operators in terms of volume. Major grocers are expected to continue expansion through franchising and supplying the wider independent convenience sector, as they combat the ceaseless rise of Aldi and Lidl.
“Independent operators will adapt and evolve, shifting focus to retail innovations, such as food-to-go, to drive profitability. Fuel sales will inevitably decline in the long term as the introduction of alternative fuelled vehicles gathers pace. Research and development supported by government initiatives and apps to pay for fuel in advance along with Wi-Fi rollout and more electric charging points will all feature.”
Chris Day, Global Managing Director at Christie & Co comments, “We are seeing the signs of increasing confidence and economic positivity in almost every sector in which we operate and pipelines continue to grow by double digits as we enter 2018.
“Whilst higher inflation and sluggish wage growth are squeezing consumer spending and acting as a drag on the speed of UK growth, and a lack of clarity around Brexit is hampering some investment, but there are positives. Unemployment is at its lowest rate since 1975, inflation remains low, interest rates are stable and manufacturing growth is strengthening. In short, the economy is recovering and there is still plenty of room for growth.
“Within Christie & Co, we are embracing change and bolstering our team at home and internationally to capitalise on our expertise to attract and support both new and well-established clients who need help navigating the market, and who want to ensure a high-performing business.”