U.K. retail warehouses overtake supermarkets as most attractive retail-sector assets in H1 2021

Retail warehouses have emerged as the most attractive retail sector asset in the United Kingdom for investors in first half 2021, overtaking supermarket investment volumes, reported Colliers in its 2021 Midsummer Retail Report.

Tom Edson, head of retail capital markets at Colliers, commented, “In the first half of 2021, we’ve seen more than £1 billion [€1.17 million/$1.38 million] of retail warehouse transactions which is up around £400 million [€467 million/$551 million] on the corresponding period last year.

“Despite grocery assets remaining popular, registering £800 million [€934 million/$1.1 billion] of investment in the first half, there is less of a value-add opportunity for such properties when compared to retail warehouses. This has tipped the balance in favor of the retail warehouse.”

In the report, Colliers noted there has been concerted buying of retail warehouse properties since the beginning of 2021, as they are seen as being conduc