• Twitter
  • LinkedIn
  • Facebook
  • Instagram
  • Client Login
  • Contact
Bannon
  • Home
  • About You
    • Investor
    • Retail Occupier
    • Office Occupier
    • Property Owners
    • Developer
    • Land Owner
    • Lender & Finance
    • Work at Bannon
    • Media
  • About Us
    • About Us
      • Meet the Team
      • Join the team
      • Sustainability
    • Our Services
      • Sales & Lettings
      • Property Management
      • Valuation & Professional Services
      • Consultancy
    • Research & Data Analysis
      • Offices
      • Investment
      • Retail
    • Case Studies
      • VIEW ALL
      • Retail
      • Investment
      • Office
      • Consultancy
      • Property Management
      • Professional Services
  • Property Search
  • Menu Menu

Understanding Sustainability of Income is Understanding Retail Assets

17th April 2023/in Sustainability, News, Reports, Retail

At Bannon we analyse two types of sustainability, environmental sustainability attributes and the sustainability of an asset’s income. Sustainability of income is important as this considers the ability of the Occupier of the asset to pay rent to the Owner based upon the business they carry out in the building. Gaining an insight into this allows an Owner to understand whether they will maintain or improve income on the occurrence of lease events such as break clauses and expiries and also assess how solid or otherwise their income is in the context of market conditions and the implementation of asset strategy. The asset class that gives an Owner the greatest opportunity to use this analysis is retail where the performance of the business within the shop is directly relevant to the stability of income the Owner receives. 

Understanding the strength of the rental income by analysing the trading and commercial performance of the rent paying occupiers puts the Investor in the strongest position to negotiate and regear lease terms, react to market requirements and devise and implement strategic asset goals. Bannon carry out rental sustainability analysis for schemes utilising our depth of retail asset and occupier specific data. The occupier’s current position will be further validated by their wider commercial performance and the effect both macro and micro economic conditions may have on the occupiers and their ability to perform. 

The sustainable performance of an occupier is a key consideration for maintaining and forecasting income over the period of ownership. This gives our clients a clear advantage is assessing the value of an asset and looking at acquisition opportunities. The value of retail assets, especially shopping centres, has been depressed for some time despite their proven track record of producing strong predictable cashflows. Adopting sustainable rental analysis allows our client to see past the negative sentiment and acquire income producing assets at low cost when compared to other real estate investments. 

A comprehensive understanding on a schemes rental sustainability can inform decision making when devising and asset strategy and inform cashflow forecasting. This can aide in de-risking cash flow line items for owners over their ownership period. Understanding rental sustainability can serve as a means of curating the schemes occupier mix and planning strategic initiatives. Overall, the ability to enhance the knowledge and understanding of income for the owner serves as a means to promote good asset management and to improve income over the term of ownership. 

If you would like to know more about Bannon’s approach to rental sustainability analysis and how it can strengthen your asset strategy, please get in touch @ Consutancy@bannon.ie. 

 

Author:                 George Colyer, Surveyor, Bannon 

Date:                     17th April 2023

 

Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on Pinterest
  • Share on LinkedIn
  • Share on Tumblr
  • Share on Vk
  • Share on Reddit
  • Share by Mail
https://bannon.ie/wp-content/uploads/micheile-henderson-lZ_4nPFKcV8-unsplash-1-scaled.jpg 1706 2560 Bannon Webpage Admin https://bannon.ie/wp-content/uploads/bannon-logo-trans.png Bannon Webpage Admin2023-04-17 14:28:102023-04-17 14:29:53Understanding Sustainability of Income is Understanding Retail Assets

Search by Category

  • Sustainability
  • Property Management
  • Acquisitions
  • Brochure
  • Construction
  • Charity
  • Development
  • Events
  • Economy
  • Industrial
  • Investment
  • Residential
  • Lettings
  • Land
  • News
  • Office
  • Planning
  • Real Estate
  • Reports
  • Retail
  • Shopping Centre

Archives

Society of Chartered Surveyors - SCSI Ireland

Our Services

  • Sales & Lettings
  • Property Management
  • Valuation & Professional Services
  • Consultancy

Address

Hambleden House
19-26 Pembroke Street Lower
Dublin 2
D02 WV96
Ireland
»Map

Contact Us

Phone: +353 (1) 6477900
Fax: +353 (1) 6477901
Email: info@bannon.ie

© Copyright - Bannon 2017 // Bannon is a registered business name for Bannon Commercial Property Consultants Limited.
Registered in Ireland: No. 384639. // Registered Address: Hambleden House 19-26 Pembroke Street Lower Dublin 2 // PSRA Licence No. 001830
  • Twitter
  • LinkedIn
  • Facebook
  • Instagram
  • Website Terms and Conditions of Use
  • Privacy Policy
  • Cookie Policy
Scroll to top