Size matters in the new normal

As part of our May MA500 series, The Morning Advertiser​ editor Ed Bedington caught up with Paul Davey, managing director of Davey Co, to ask him how the coronavirus crisis was impacting the pub property market.

He said pricing was going to be dictated, as ever, by supply and demand issues, but also by fund liquidity and access to capital.

However, he said there would be a new, key factor: “The overlying effect on pricing is going to be down to the depth of the offer, the spatial side – maximising the use of that, it’s commercial viability and the location.”

Hardest hit

He added: “The hardest hit in terms of value are likely to be the city-centre, single-room, single-trading area operations. They’re going to be significantly affected, as opposed to the rural, village country inn, which will see an uptick in demand, and values will be maintained. I can’t see a significant downside to those venues in those locations.”

Davey doesn’t feel the crisis will have an impact on new entrants coming into the market, he explained: “The pub market has always been very attractive to first-time business buyers. I think they’ll still be attracted to this sector as they always have been in the past from recessions. The bounce back can be quite significant.”

For more on Davey’s thoughts on the sector, watch the video above. You can access the MA500 webcast by clicking https://onlinexperiences.com/Launch/Studio/ESH=43F25AC4-5CB0-4B04-A8CD-A898DCA7ADEA​