A new update from the Urban Land Institute (ULI) to its Reshaping Retail report, which was published earlier this year prior to the coronavirus pandemic taking hold across Europe, has now forecast the COVID-19 outbreak will accelerate the restructuring of the retail property sector, particularly in the United Kingdom. Apart from the lockdowns that have already significantly impacted rental income, the negative economic outlook is expected to continue to impact rental income for a longer period of time, as well as valuations, which will be an important trigger in order for the sector to adapt to a “new normal.”
The latest research, based on recent interviews with leading industry players, re-examines four triggers, identified in the original report, that may break the near paralysis in the European retail real estate investment market that had been observed prior to countries entering lockdown periods, including:
The economic picture
The Euro
