The retail squeeze is starting to show on property values, said Credit Suisse as it reappraised real estate investment trusts Hammerson, British Land and Shaftesbury.
Property company Derwent London said it had signed £2.4m of new lettings in the first quarter, up 4.9% on December estimated values.
Derwent London proposed a special dividend on Tuesday as it posted a rise in 2017 net asset value.
Crossrail has completed the base infrastructure works at Soho Place, London W1, and handed over the site to Derwent London.
Derwent London has secured planning permission from the City of Westminster for two projects totalling 443,000 square feet.
Derwent London updated the market on its third quarter trading on Thursday, claiming it was staring down another record letting year, reporting that it has let or pre-let 674,800 square feet achieving £41.2m pa of rent in the year-to-date.
British Land is a bellwether of the UK real estate office and retail market but while rents and asset prices are likely to decline it's 34% discount is overdone, Deutsche Bank said, upgrading the shares to 'buy' and those of sector peer Derwent London to 'hold' from 'sell'.
British Land: Deutsche Bank upgrades to Buy with a target price of 660p.
Derwent London has pre-let most of the remaining office space at 80 Charlotte Street in London to The Boston Consulting Group.
Derwent London: HSBC maintains Hold with a target price of 3053p.
Property developer Derwent London hiked its first-half dividend as the London-focused group boasted a record six months of new lettings.
Derwent London announced on Monday that it exchanged contracts on the sale of its long leasehold interest in the Copyright Building, 30 Berners Street W1 to Union Investment Real Estate.
Derwent London has let the top two floors of the tower at White Collar Factory in London EC1 to cloud content management company Box.com for an initial rent of £2.1m a year or £75 per square foot.
Numis upgraded its recommendations on British Land and Land Securities to reflect their improved capital value assumptions for the pair, which had been overly bearish, even as it expressed a preference for small and mid-cap firms because of the risk aversion prevalent among management teams.
Derwent London posted a first quarter trading update on Thursday, reporting that in 2017 to date it had let or pre-let 260,100 square feet, achieving rents of £17.0m per annum.
Burberry: RBC downgrades to Underperform with a target price of 1530p.
Derwent London has recommended a special dividend after it announced £327m of property disposals above book value that are expected to complete in coming weeks.
Tobacco stocks rose to the top of the leaderboard after analysts at Citi sung the praises of British American.
Derwent London has completed the sale of its freehold interest in 120-134 Tottenham Court Road in London to a private investor for £69.74m.
Dairy Crest: JP Morgan keeps at neutral with a target price of 600p.