[ PROPERTY ]
Not all doom and gloom
Although the trend for retail continues to move online , this doesn ’ t mean the end for retail property , says Quirijns . Many retailers find their stores give their offering a “ halo effect ”, which strengthens the demand for their goods and services . The growth of logistics real estate during this time of social distancing has been strong , with this property sub-sector expected to make gains of 10 per cent this year , says Guy
Barnard , co-head of global property equities at Janus Henderson . E-commerce in both retail and manufacturing has seen phenomenal growth in the UK . Penetration of e-commerce was at 19 per cent at the start of this year , up from 9 per cent in 2009 , says Barnard . By April , it was running at 34 per cent and even when things get back to normal , he expects that it will stabilize at around 24 to 25 per cent .
“ Before the pandemic , we expected it would reach that level in two- or three-years ’ time , so it has accelerated the shift ,” he says . The growing reliance on technology in industry and our daily lives is also driving growth in real estate focused on this area . This is often considered as an alternative part of the market , covering assets such as data centres and cell towers , but shares have increased by up to 40 per cent this year , says Barnard .
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