Investors are optingÂ for '˜quality over quantity'
INVESTORS are choosing quality over quantity on the south coast, according to the latest report from commercial property specialists Lambert Smith Hampton.
A second quarter investments report by LSH highlightedÂ that demand for good quality industrial property remains high in the south east, where average rent yields were driven down to 4.3 per centÂ in the second quarter of 2018, against a background of higher property prices.
The report also showedÂ the total value of commercial property transactions in the south east in Q2 stood at Â£860m, down 43 per centÂ on the previous quarter and a drop of 25 per centÂ year on year, as investors pick and choose carefully.
Jerry Vigus, director of capital markets and industrial andÂ logistics atÂ LSH's south coast offices, said: '˜These figures demonstrate investors are focusing on quality assets, while continued high levels of demand are keeping property prices high, and rental yields are becoming lower as a result.Â
'˜The south remains a key area for investment in industrial and warehousing, due to continued occupier demand and a lack of supply.'Â