Outlet centres are hidden gems in the world of retail real estate. Often bundled in with shopping centres, outlets offer a distinct experience for customers and return-profile for landlords. This report provides an overview of the operational and valuation drivers of the U.K. outlet market.

The latest report by the Local Data Company (LDC) and Green Street, covering key developments across the entire Great Britain retail and leisure market over 2023, shows a spike in numbers of both closures and openings, representing significant churn. The overall data picture demonstrates the resilience and flexibility of GB retailers and leisure operators in the face of widespread economic difficulty, with clear opportunities emerging for businesses and landlords.

Green Street takes a closer look at the Retail sector: Whilst the holistic takeaway for London’s high-street retail is negative, granular analysis – using data from Local Data Company, a Green Street-owned U.K. retail analytics company – of two distinct portfolios suggests the negative read across is less severe than at first blush. Read this report to learn about a 27-building portfolio within the Langham Estate situated in London’s West End that has entered exclusivity with a current bid of ~£360m (~£800/sf) from Oval Real Estate backed by Elliott Advisors.

Green Street takes a closer look at the Industrial sector as the rate of change in European ecommerce growth slows and recessionary headwinds loom on the horizon. Some highlights from the report are included in this excerpt, including a look at penetration rates, supply and ecommerce-driven industrial demand estimates, and more.

The presence of dual real estate markets (public and private) is an underappreciated blessing as it creates a comparison mechanism unavailable in most other corners of the investment world and offers unique opportunities for alpha creation. One of the most prominent such strategies for private market investors is to favor sectors that trade at high NAV premiums in the public market. This approach outpaces one based on survey responses from private institutional investors, even if this latest method can be positive. The predictive value of public markets to private investors has endured over the years as it brings real-time collective wisdom to a business that evolves at a sometimes-sclerotic pace in the private market.

Green Street recently initiated coverage on Swedish company Pandox (PNDX), and also released a new Pan-European Hotels 101 report. Some highlights from the new report are included in this excerpt, as well as insight on hybrid/variable leases, taken from page 17 of the full report.