The latest specialist sector snapshot on commercial property occupier trends from Colliers International shows that economic momentum is building in the specialist sectors with corporate rationalisations and offers beginning to pay dividends.

The key findings in the snapshot report covering some of the specialist property sub-sectors show that in the Automotive & Roadside sector insolvencies are providing opportunities to acquisitive groups, but interest is limited to profitable franchises. A ‘shake out’ of older non-prime stock is underway in the absence of further government support. Petrol stations are deemed to be ‘stable’ although values will fall as sales volumes contract further.

In the Healthcare sector, care homes have come under scrutiny at a difficult time. The report says that ‘regulatory risks are rising at the same time that profit margins are being squeezed.’

For the Hotels sector, Colliers say that London hotels recovered well in 2011 with the provinces improving more slowly. Euro weakness is a concern due to the potential negative impact on tourism while Sterling denominated assets will continue to benefit from safe haven investment flows, especially for property assets such as London hotels.

In the Licensed and Leisure sector, pubs are ‘continuing to face stiff headwinds,’ say Colliers, but rationalisation and diversifying the offer into catering has improved trading positions. As with pubs, restaurant trading is also still dependent on discounting

Commenting on their data Dr Walter Boettcher, Director, Research and Forecasting at Colliers International said: “Economic momentum is building, but disposable income growth is still limited hence discretionary spending will remain subdued with households continuing to look for value offers.

“The specialist sectors continue to be buffeted by weak confidence and falling real wages. The household savings ratio was up for the third consecutive quarter to 6.6% at end Q3 11. Real household disposable income fell by 1% and this is the sixth consecutive quarter with negative year-on-year disposable income growth. Households continue to exercise great discretion in purchasing.”