The Property Ticker: Unite and Merlin 1H update; Industrial investment sales reach £2.38bn in 1H; Smyths Toys buys £118m Midlands distribution hub estate; UK office construction falls...and more

Research evidence excerpt

The Property Ticker: Unite and Merlin 1H update; Industrial investment sales reach £2.38bn in 1H; Smyths Toys buys £118m Midlands distribution hub estate; UK office construction falls...and more

ilient in Q2,

with transaction volumes reaching £10bn, though activity slowed amid geopolitical

uncertainty, as deal count fell 20% QoQ and investment volumes were heavily supported

by a handful of large transactions. Living assets led investment demand (£4bn), including

a record £2bn in BTR/PRS deals boosted by the Metra Living portfolio acquisition, while

retail proved the most resilient commercial sector, supported by strong retail warehouse

activity. In contrast, office and industrial volumes were constrained by limited available

stock, although select large office deals highlighted occupier demand to acquire strategic

assets. Overseas investors accounted for more than half of total investment, while

domestic institutional activity remained subdued. Pricing was broadly stable across

sectors, with only modest yield softening in select areas, reflecting a market that

continues to offer long-term opportunities despite ongoing political and geopolitical

headwinds. (Source: CoStar)

• UK office construction starts fall to a record low as development focuses on London:

UK office development activity has weakened significantly, with office construction

starts falling below 5m sq ft on an annual basis for the first time since at least 2010,

reflecting elevated financing and construction costs, subdued occupier demand, and

broader economic uncertainty. While prime office demand remains relatively resilient –

particularly in central London, where rental growth continues to support selective

speculative development – developers are increasingly prioritizing pre-letting to de-risk