SPACE+ Blog

Beyond the Viability Gap: How the schemes that are getting built actually stack up

rob@space-plus.org (Rob Marten) — Wed, 13 May 2026 12:13:30 GMT

At ALT/RESI UK (April 2026) the DEVELOP Tribe discussed the UK development sector navigating a viability crisis where regulatory friction and macroeconomic instability have made traditional delivery models precarious. Survival now hinges on de-risking through strategic partnerships and securing the planning flexibility necessary to pivot across long-term horizons. Without a fundamental recalibration that incentivises demand and legitimises profit as a return for risk, the industry faces prolonged stagnation despite high underlying need.

The Returns Are in the Management. So Where Are the Asset Managers?

rob@space-plus.org (Rob Marten) — Wed, 13 May 2026 11:55:48 GMT

There is a telling line in PIMCO's outlook for real estate in 2026. Writing about the shift in how returns will be generated this year, their team makes the point that the majority of returns now need to come from the asset itself, rather than from external market forces. Cap rate compression, in other words, is no longer a strategy. The market won't do the work for you.

As student demand recalibrates, what does a viable PBSA deal look like now?

rob@space-plus.org (Rob Marten) — Wed, 13 May 2026 11:54:33 GMT

The PBSA Tribe discussion at ALT/RESI UK (April 2026) explores a shifting landscape for the PBSA sector, characterised by a recalibration of the market where traditional investment models are being challenged by economic pressures, technological advancements, and evolving student needs. While the UK market is considered more mature, it currently faces significant headwinds regarding development costs and regulatory hurdles, leading many investors to look toward continental Europe for better supply-demand dynamics and more favourable entry points.