| Industry News |
|
| News » Commercial Property Law » Commercial property recovery 'to be tiered' |
|
11/05/2009
Commercial property recovery 'to be tiered' |
|
There will be two distinct sectors in the commercial property market in the next couple of years as the country emerges from recession, it has been predicted.
Property economist at Capital Economics Ed Stansfield said he agreed with the notion that there will be a "two-tier" market appearing soon, "where the prime properties stabilise and may even begin to rise in price again, but the rest continue to languish unloved in the background."
Such a situation may mean it is some of the more attractive commercial properties in fashionable areas such as Westminster that get more attention.
Mr Stansfield acknowledged that overall sentiment among investors is improving, noting the findings of the CB Richard Ellis report showing that the fall in commercial property prices is slowing.
April saw a 2.1 per cent decline in prices, compared with 2.7 per cent in March.
Michael Franks, Partner in the Commercial Property Department of Westminster solictors, William Sturges & Co said, "one of the crucial factors is whether tenants pay their rents. With better quality properties the payment of the March quarter's rent has been good which helps properties maintain their value. In poorer quality properties payment of the March quarter's rent has been patchy which reduces the value of the property".
This month's CBI/GVA Grimley corporate real estate survey also contained some potentially positive news, finding that the negative balance between the number of firms taking up more office space and those reducing it fell from 24 per cent to 17 per cent in May.
Written by Anna Norton
 |
| |
| Related Articles |
08/01/2010
Office demand 'to focus on London'
The commercial property market will recover strongly in London in 2010, in contrast with the rest of the country, it has been predicted.
|
22/12/2009
Commercial property 'to recover slowly from recession'
Commercial property will only recover gradually in the near term as it is likely to be feeling the effects of the recession even after the economy starts growing again, it has been predicted.
|
18/12/2009
Commercial property market 'to pick up in 2010'
The use of commercial property lawyers in 2010 may pick up in the south-east as it has been forecast that the region will see matters improve as the year wears on.
|
16/12/2009
Business confidence increases
The use of business lawyers may be set to increase as a poll of firms has shown that levels of confidence are rising.
|
14/12/2009
New tax rule to "irritate" large commercial landlords
A tax break for cheaper empty properties is "welcome", but those who might use the services of a property lawyer for commercial transactions will go on being "irritated" by the commercial property rate tax they will still have to pay on large ones, it has been argued.
|
News Archive