27 Feb Commercial Property News 2018
COMMERCIAL PROPERTY NEWS
We here at Home House Buyers have done some research into how the commercial property sector has performed over the last year and what we should expect over the next 12 months.
The last year 2017 has been a stronger year than expected, the economy has seen the growth that hasn’t been anticipated. This coupled with unemployment at its lowest level since 1975, owner-occupier is at an all-time high and consumer spending is strong. Selling commercial property is on the up too with transactions at the highest level since 2006, if you are wanting to sell commercial property fast now is a good time.
2018 Commercial Property Forcast
Looking on 2018 looks like it has a few bumps in the road but also some smooth sailing along the way. Here at Home House, we cant dismiss the impact of political uncertainty, rising interest rates, investment demand, Brexit, property returns or consumer debt. We also see positives in terms of which will be driven by growth, new lending resources, new investors coming into the marketplace, more Chinese funding and this helped with the global economic recovery will help commercial property thrive in 2018.
We spoke to Mr Stephens Director of a commercial agent said ” We are optimistic the performance of commercial property will continue to provide resilience given occupier friendly product, outside of the capital at 4.5%. There is a strong appetite in the marketplace providing the fundamentals are there. The Safest income has been the industrial sector but plunging yields means that now investors are looking for more value for money, inherently leaning towards retail and leisure opportunities for better yields. However, there is more risk in these sectors”.
The Office sector has seen a lot of activity, and not just in the capital (London), overseas investors were the main driving force for price hikes. We do see other international investors getting into the mix with new upcoming economy’s getting stronger. Although we do see the broad rationale for UK property investors remain intact, and this will be concentrated in the office sector.
Industrial property has healthy returns with a clear occupational outlet still proves to be tempting for domestic and overseas investors looking for good returns. Uk Industrial sector is only owned by 6% of foreign investors, which is the least by any sector- this does seem to be changing with more and more coming into the marketplace. overseas investment has almost gone up by a third in 2017 with 50% of transactions which are mostly in the supermarket and distribution warehouses. We expect more overseas investors using bigger platforms to enter the marketplace rather than smaller plots.
Prime commercial property and good secondary property is harder to get hold of, vendors sell their commercial property selectively. Having studied the commercial marketplace we expect yields in the prime and some secondary areas decreasing, this will bring more non-prime assets to the marketplace with it being so buoyant.
If you are looking at selling your commercial property fast, Home House Buyers can help we pay all of the fees within the process and can complete within a timeframe to suit you whether its 10 -14 days or 3 months its not a problem call 08006121366 or fill out a form online and one of our commercial team will give you a call to discuss your needs.