Commercial
property investors received another battering as a raft of bearish
forecasts and store closures poured more gloom on the retail sector. As
the numbers of retailers closing their doors, moved from a trickle to a
steady flow, store closures were forecast to rise by 27,000 by the end
of February, leaving one in 10 outlets across the UK empty.
Asked what he
expects from the commercial property market next year Ian Cullen,
Founding Director, of IPD said: "The outlook for the commercial
property market in 2009 is undoubtedly bleak. We’re not offering a
forecast of X percent or Y percent, but the key question is the extent
to which a full scale recession kicks in to further damage occupier
demand. It is pretty hard to believe that yields will be pushed much
further out as a result of pure investment caution....
Commercial
property rentals nationally will fall by 7% in the next 2 years as the
recession begins to bite, according to the latest research. However,
with sentiment in the sector worsening by the week, falls in rental
value could exceed these levels, according to the findings of The Q3
Grimley’s Economic and Property Market Review.
The UK commercial
property market has become best value in the world for investment,
according to the annual strategy review by global property fund manager
LaSalle Investment Management. LaSalle, believes that so-called “fair
value” – prices offering good rates of return compared with long-term
bond rates – has been reached.
Savills' November
index of commercial development activity shows 13th monthly fall in a
row. The UK commercial property sector continued to deteriorate at an
increasingly rapid rate last month, new research by Savills has shown.
