Selling my commercial property is getting harder and harder.
These words are being uttered by virtually 100% of people who own commercial property and who are looking to sell.
Although there are many reasons why this is the case, the main reason for this has always been, and will continue to be, the inability and reluctance of banks to lend money. Without capital being made available, companies and people cannot borrow money needed to buy property, companies who occupy properties cannot borrow money they need to survive and thus have to close down their businesses and move out of their premises and consumers cannot borrow money needed to stimulate the economy and fuel growth. A number of banks, including Societe Generale and Eurohypo, have recently announced that they will suspend all new property lending which is a further devastating blow to the commercial property market. Banks are so nervous about the Eurozone crisis and their exposure to sovereign debt that they are now hoarding as much capital as they can instead of feeding it into the market which is what is needed.
When asked about selling my commercial property, I simply say that unless I am prepared to accept that prices have fallen dramatically and the worst is yet to come, I will not be able to.
To stay abreast of the latest commercial property market news, visit Jason Werth’s sell my commercial property blog