Commercial property deals down 70 per cent in Yorkshire in 2023 - but 'cautious optimism' for next year

Director Edgar Seligman said: “It has been reported that the value of industrial, office and retail buildings across the Leeds and North Yorkshire markets has dropped by an average of five to 10 per cent since the start of the year and high inflation, interest rates and poor economic growth continue to dominate the national conversation.

“However, we believe this is an over-simplistic estimate, as there are intricacies within the sectors, with the value of industrial and offices staying roughly even over the period, but the retail element continues to underperform. In addition, and possibly more relevantly, transactional volumes across all sectors in Yorkshire are down by as much as 70 per cent, when compared to 2022 as a whole.”

According to CoStar, £530.9m of deals took place in 2023 compared to £1.39bn in 2022.

Mr Edgar added: “Simply put, the price gap between what a landlord is willing to sell for and what an investor is prepared to pay has led to a lack of deals in the market and pricing accurately has proven difficult for many, as the market finds its base – with investors cautious and sellers over optimistic.

“There remain significant volumes of capital chasing industrial and well-located office assets, but anything non-core is failing to transact.

“With the steadying of the money markets in recent months, the future appears far more stable for investors, and the majority of our investor clients are now considering re-entering the market, with lower entry prices providing higher yielding opportunities and better prospects for strong income and capital growth.

“Whilst further shocks cannot be discounted, there are grounds for cautious optimism for investors and opportunities abound.”