The Intermediary –- May 2026 - Flipbook - Page 73
SPECIALIST FINANCE
Opinion
VING AGAIN,
RYWHERE
in a measured, more disciplined form.
There is an increased willingness to
engage with the sector, particularly
where there is a clear income story or
a location that still has relevance. This
is a positive development, but not a
return to the way things used to be.
Retail is no longer being treated
as one broad category that moves
together, and in reality, it probably
should not have been in the first place.
Investors are returning to parts of
the market, not all of it, and they are
doing so with a much clearer view
of what works and what does not,
which is where the difference is
now being made.
Dominant schemes, convenienceled assets, and well-located units
with a clear role in their catchment
are aracting aention and, in some
cases, quite competitive interest.
Assets without that clarity, or
without that strength of positioning,
are finding the conversation more
difficult, and in some cases, not really
geing started at all, which tells you a
lot about where the market is siing.
lot of things tend to fall down. Retail
transactions now require a level
of detail that was not always front
and centre.
This may be around footfall,
tenant mix, local competition, or
Demand is back.
There is no question
about that, but not in
the way people might
have expected. It is not
returning in a broad,
forgiving way where
everything benefits just
because the market feels
a bit better”
Back at the centre
In that environment, the role of
the broker becomes vital, as a deal
oen comes down to how well it
is understood and presented. This
sounds obvious, but it is still where a
simply explaining why a particular
asset works in its location and for its
intended use.
That is where experience and
judgement really come into play,
and where good brokers separate
themselves from the rest.
It is also worth noting that the
type of occupier we are seeing more
of now is slightly different. Smaller
operators, who are strong from a
brand perspective but structured
differently in covenant terms, add
another layer of consideration. Much
of this comes back to who you are
lending to, as much as what you are
lending on, because if you get that
wrong, the rest of it becomes much
harder to justify.
Less room for error
Looking ahead, it is difficult to take a
fully definitive view given the number
of moving parts. If the last few years
have shown anything, it is that things
can change quite quickly. That said,
the direction of travel feels relatively
clear. Activity is there, demand is
there, but it is not spreading in a way
that carries everything with it.
Retail has not staged a full return
in the way some might have expected.
It has come back in a sharper, more
focused form, where quality and detail
maer more, and where the difference
between a good deal and an average
one is becoming harder to hide.
Some assets are moving well. Others
are still waiting for the market to
change its mind. ●
May 2026 | The Intermediary
71
