In the midst of so much negative economic news, it is natural to scan the headlines every day looking for something positive. There isn’t much to report on that front. Yet there is a bit of somewhat positive news by way of the 2023 UK Real Estate Market Outlook report from CBRE.

What is this bit of positive news? It’s that experts are predicting better things for commercial real estate by year’s end. They expect to see prices stabilise and investment begin increasing again. The bad news is that they are not expecting to see good things until somewhere near the end of 2023. Can you afford to wait that long?

It’s a Story of Continued Inflation

So, what is putting so much downward pressure on commercial property? The same thing that is harming small businesses, residential rental rates, and the economy in general: inflation. It continues unabated. It is likely to continue until the Government gets its financial house in order. And even after that, recovery is going to take some time.

The dirty little secret about inflation is that it is not limited to retail prices. Inflation impacts everything. Think about petrol prices. As they climb, the cost of delivering goods and services also increases. Both individuals and companies pay more just for the basics. That leaves them less to spend elsewhere.

Inflation works its way to the very top of the ladder. Where real estate values are concerned, prices fall because buyers cannot afford to spend so much on acquisitions. At the same time, rental payments fall because tenants cannot pay what they used to. It all adds up to crashing property prices that will not begin recovering until after the overall economic recovery begins.

Recovery Could Take Years

As a commercial property owner, you may take comfort in the prediction that things could get better by year’s end. There are no guarantees the experts are right, but even if they are then price stabilisation simply means the downturn has bottomed out. It doesn’t mean things are back to normal. In fact, complete recovery could take years.

Again, can you afford to wait that long? How will you fare if the value of your property continues to decline until stabilisation is eventually achieved? These are all questions we cannot answer for you. You need to answer them yourself. What we can do is offer a solution in the event that you are unable to hold out for the eventual recovery. That solution is to sell your property to us.

We Have the Resources

We are in a strong enough financial position that we can wait out the current downturn. We have the financial resources to acquire and maintain properties even in the midst of the current inflationary cycle. As such, we are currently buying all sorts of commercial properties to add to our portfolio.

We are interested in medical centres, building societies, retail outlets, hospitality properties, office space, and more. We are looking at virtually any property right now. If we find a commercial property that we believe adds value to our portfolio, we are willing to try to work out a deal.

Perhaps your property isn’t worth as much today as it was five years ago. But how much will it be worth by the end of the year? If you have the resources to hold out until things get better, good for you. We wish you well. But if not, we are offering a solution that will let you get out before any more damage is done. We hope you will give it serious consideration.