In today’s times of austerity, many are cutting their cloth accordingly. For those who are in a financially stable position though, the current economic problems represent a real opportunity.
During 2008, commercial property prices fell by 26.8 per cent, according to figures from CB Richard Ellis. And from mid 2007 to mid 2009 the UK commercial property market was a horror story as prices nosedived by roughly 45 per cent.
Now, although these figures are slowly being corrected, we still remain some distance from returning to the commercial property values of early 2008.
This means, when selling their properties, many commercial property owners will be losing money on their original investment.
The deflated commercial property market of today gives those in a favourable financial state the option of picking up commercial property at excellent value.
We have seen an example of this happening just this week, with Altrincham based management company, Regional Property Solutions (RPS), adding £5million worth of property to their portfolio.
The privately owned property includes a 20,000sqft shop and commercial office development in Southport, a 50,000sqft transport depot in Batley and a 20,000sqft shop in Scarborough.
The fact that, in these testing economic times more and more companies are falling into receivership only increases the possibility of picking up a bargain commercial property.
However, those who have the luxury of being financially secure and are considering investing in commercial property, should think seriously about doing so as quickly as possible.
The commercial property market is now making tentative steps towards a recovery and there is a new confidence in the market. With the first steps seen back in early 2010, when the country’s biggest property developer Land Securities, said it was to begin with a £655m London West End building spree. This is to include the largest Oxford St development in 40 years and was the first such scheme to be launched since the credit crunch began.
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Preston’s Commercial Property Future In The Balance
