interestrateripoff Posted January 29, 2014 Share Posted January 29, 2014 http://www.theguardian.com/business/2014/jan/28/uk-commercial-property-market-british-land British Land said the UK commercial property market was strengthening with increased investment spreading from London into regional markets.In a trading update, Britain's second-biggest property company said there was more interest in its London office space and that retailers were looking to open new stores. Chief executive Chris Grigg said: "We have had a good third quarter and the business is performing well. Overall, the UK property market had a strong quarter with London strengthening further and domestic and international investment spreading out into the regional markets. "From an occupational perspective, we saw increased interest in our office space in London, notably in the City. In retail, the economic recovery is having a positive impact on confidence and we continued to benefit from retailers looking to take space in the best quality locations." The company said it had let the 30th floor of the Leadenhall Building, popularly known as the Cheesegrater, to upmarket serviced office business Servcorp. The deal is the first single-floor letting in the City block, of which British Land owns a half share. Great news from a VI. Quote Link to comment Share on other sites More sharing options...
erat_forte Posted January 29, 2014 Share Posted January 29, 2014 What does it mean when a market "strengthens"? I would have thought that it meant it was more stable, with less volatility and more transactions at middling price that benefitted both buyers and sellers? Quote Link to comment Share on other sites More sharing options...
Sancho Panza Posted January 29, 2014 Share Posted January 29, 2014 If the price of commercial is going up,then it's probably to do with the amount of industrial square footage that's had it's roof taken off in the Midlands and north. Again,the boom inside the M25 lifting national averages. Quote Link to comment Share on other sites More sharing options...
Sancho Panza Posted January 29, 2014 Share Posted January 29, 2014 What does it mean when a market "strengthens"? I would have thought that it meant it was more stable, with less volatility and more transactions at middling price that benefitted both buyers and sellers? It basically means more zombie banks not taking the hit on the book value of their empty retail/industrial 'assets'. Quote Link to comment Share on other sites More sharing options...
Fromage Frais Posted January 29, 2014 Share Posted January 29, 2014 (edited) It basically means more zombie banks not taking the hit on the book value of their empty retail/industrial 'assets'. This is my experience. I have looked at a couple of hotels that need total renovation just to keep competitive with the premier inns on every corner. Been for sale for years with no investment taking half the money it was when they bought it. They just hold on and on and in some cases properties are actually rotting away but they hold firm. Probably better for them to keep them on the balance sheet than take the 60% plus or so hit Same for shops etc rents down bought for 6% return on the old rent and don't want to sell at 8%+ return on current rent which good retail properties in regional cities seem to attract. Everyone moans its the banks but it seems fair to me if a hotel for example makes a profit/good EBITDA they will lend 60% its just people want multimillion pound loans on profits in the low hundreds of thousands, these can evaporate quickly if cap ex is not maintained or a new hotel opens up next door. its very frustrating as not much for sale either banks seem to be waiting for the market to be re inflated. Edited January 29, 2014 by Fromage Frais Quote Link to comment Share on other sites More sharing options...
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