Commercial Property Consultants Predict Dip in Capital Values
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When the market is in such a state of flux, it is no wonder that commercial property consultants are being turned to, by many savvy commercial property owners. Commercial property consultants came to the fore as the investment community in commercial property became dominant in the 1980s. They offer a range of bespoke services for their clients, including asset property management, property investment finance, and valuation services. Additionally, many have put resources into market surveys and reports, with those of high calibre eagerly anticipated and widely read.
If you own commercial property primarily as a source of income, then you will be keeping an eye closely on current market conditions. After the strong cycle of boom, and crash in recent years, this last year has seen something of a tentative recovery in parts of the UK commercial property sector. Because of this, many property owners are considering whether the time is right for selling their property, and turning to their commercial property consultant for advice.
And what are the commercial property consultants saying? Well there are a number of straws blowing in the wind on this, with some issuing reports that, whilst not exactly bullish, are cautiously optimistic. For instance in its Q2 2010 UKIT Bulletin, LSH state:
"The past 12 months has seen the investment market stage a significant recovery, with activity gaining momentum and yields on 'prime' assets moving in sharply. However, the speed of the recovery has caused imbalances and the next few months should see a period of consolidation, as the market adjusts to these new levels."
Equally, other commercial property consultants have been fairly bearish, with the IPF UK Consensus Forecast Survey reporting:
"The dip in capital values next year is now predicted to be worse than previously expected. The quarterly survey shows that all sectors, except West End offices, have seen downward revisions to capital value growth forecasts. Standard shops are expected to perform the worst, with forecast capital value falls of 2.4%." And King Sturge has observed that "the level of enquiries for office space fell by 12% quarter-on-quarter in the three months to the end of June..."
A general consensus amongst commercial property consultants seems to be that, just because of a temporary resurgence in values, in specific areas, property investors should not assume a rising market in general in the UK. In fact the opposite may be happening, with values in some other locations in the UK having fallen, and the yield gap, between prime and secondary real estate at an all time high. Yields for offices in central London are standing near 3%, whereas retail property in the Midlands, can be at yields close to 20%.
If your commercial consultant is also seeing the oncoming retrenchment as a time to sell, your next question will be - sell to whom? Buyers are not thick on the ground across much of the UK commercial sector.
Fortunately there is a new buyer of first resort on the market- SellMyCommercialProperty. We are actively seeking to put our substantial funds into the UK commercial property market, and so are looking for properties for sale now. The team at SellMyCommercialProperty is geared for a fast sale, being able to undertake initial valuations and make offers within 48 hours, if need be- so we can give you a fair market price for your property fast. If your commercial property consultants are advising you to sell, contact SellMyCommercialProperty today, and let us help you get ahead of the game.
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