Our latest Q4 scores for UK retail operators remain significantly below the UK average and have remained unchanged for the last 12 months. This is no surprise given the UK high street includes the failures of Wilko and the struggles of Body Shop among other concerns. UK office and logistics occupiers are at lower risk of failure in comparison to retailers, although logistics does sit below the UK average.
In contract, European based logistics operators are trending above their regional average and showed improvement in Q4 versus Q3. Hotel tenants recorded the best improvement in scores during the last 12 months and scored just below logistics at 83 out of 100.
In North America office and retailers maintained above average scores despite market commentators observing that the office sector remaining cautious in Q4. While office occupiers may be considering their occupational needs, it is not due to financial struggles but down to the impact of hybrid-working and economic uncertainty weighing on expansion plans.
Across all regions healthcare offers the most income security, albeit it remains a small sector with fewer investment opportunities.
Our latest T200 Q4 reports are available highlighting tenant risks in the UK, Western Europe and North America.
