RICS Economy and Property Market Update – March 2021
The outlook for Commercial remains sector specific; the ongoing demand for industrial and logistics in well located areas has seen yields push towards 4% as referenced in the RICS Report – Lender appetite for non-essential Retail continues to be reduced, albeit contradicted by the availability of 80% LTV for some essential Retail businesses, including within the ‘local business’ sector.
The Report also confirms; 50% of developers still quote access to finance as the key obstacle to their business, this is down from 80% in 2019 which reflects the increasing availability and heightening debt options available to support this sector. This year alone we’ve seen lenders increase both Loan to Cost ratios to 95% and Loan to GDV exposure to 75%, both market leading pure stretch-debt solutions without the need for profit share or multi-lender structures. (Mark Jones. Omega)