Demand for U.K. supermarket property assets has boomed in the face of the soaring sales volumes experienced by U.K. grocery operators during the pandemic, according to Colliers’ U.K. Grocery Real Estate Review. The trend has been further driven by the challenges facing other commercial property asset types and investors looking for a source of stable rental income.
About £1.83 billion (€2.08 billion/$2.5 billion) of supermarket assets were traded last year as investors targeted the sector for returns underpinned by grocery sector performance. Last December, the sector saw grocery sales volumes hit £11.7 billion (€13.29 billion/$15.98 billion) — the highest ever monthly level.
Tom Edson, head of retail capital markets at Colliers, said, “The pandemic has impacted all areas of commercial property investment, but grocery-backed assets have proved most resilient as they have been underpinned by this unprecedented focus of consumer spending.
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