Search Results for: commercial

Sharp fall in Scottish commercial property market

An analysis of commercial property sales during the first quarter of 2019 from the Scottish Property Federation (SPF) claims that total the value of sales in Scotland fell by 21 per cent compared to the same period in 2018. The drop in value was largely driven by fewer high-value transactions for this period, with the number of £5m+ sales down by nearly one-third compared to Q1 2018. More →

Central London commercial property market investment up over a quarter

Central London commercial property market investment up over a quarter

Commercial property investment in Central London (the City and West End) rose to £3.2 billion in the first quarter of 2019, a 28 percent increase on the £2.5 billion invested in Q1 2018, according to new data from Savills. The firm also claims that investment volumes in Central London in Q1 2019 were also higher than those in Q1 2015 before the UK’s referendum to leave the EU, when they reached £3.14 billion.

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Commercial property investors underestimate risks of climate change

Commercial property investors underestimate risks of climate change

Melting ice showing climate changeInvestors in commercial property are underestimating the risks associated with climate change, including more frequent and intense extreme weather events, and need to rethink their assessment of asset vulnerabilities, according to a new report from the BlackRock Investment Institute.

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RICS’ new commercial property service charge rules come into effect today

RICS’ new commercial property service charge rules come into effect today

RICS' new commercial property service charge rules come into effect todayNew service charge rules which aim to ensure there are no hidden costs and clarity around disputes, come in to force today (1 April 2019) and are mandatory for RICS professionals. ‘Service charges in commercial property’ has been developed with industry leaders, including major property organisations and professional bodies to secure transparent, upfront and fair costs for businesses as part of the maintenance and upkeep of their building. Amongst the rules, any charges incurred by the tenant must be explained fully at the outset and in accordance with the terms of the occupational lease, whilst any upkeep costs not specifically mentioned or explained in a lease must be made irrecoverable from the tenant.

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Offices buck downward trend for UK commercial property market

Offices buck downward trend for UK commercial property market

Capital values across UK Commercial property fell by -0.3 percent in February 2019, according to the latest CBRE Monthly Index. Rental values fell by -0.1 percent and total returns were 0.2 percent. However, for the thirteenth consecutive month the Office sector recorded positive capital values, rental values and total returns. February 2019 recorded capital value growth of 0.1 percent and total returns of 0.5 percent. Rental values increased marginally by 0.1 percent. West End & Midtown offices were the only submarket to record a fall in capital values (-0.1 percent). Outside of London, UK offices pulled up the sector average with capital value growth of 0.2 percent in February.

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Political uncertainty continues to hold back UK commercial property market

Political uncertainty continues to hold back UK commercial property market

The Q4 2018 RICS UK Commercial Property Market Survey results continue to display mixed fortunes with changing shopping habits and uncertainty around politics remaining strong influences. The retail sector, with declines driven by the structural shifts in consumer preferences, is in stark contrast to the strong performance of the industrial sector over the quarter. In Q4 all-sector occupier demand declined for the third consecutive quarter, as the net balance moved down to -13% from -9% previously. The headline reading continues to be weighed down by declines in demand across the retail sector (net balance -58%), although the Q4 results also point to a slight decline in demand for office space (net balance -9%). At the same time, demand continued to rise in the industrial sector, with a net balance of +21% of respondents noting an increase in demand over the period.

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London remains top gateway city in the world for commercial property investors

London remains top gateway city in the world for commercial property investors

London maintained its position as the top city for global real estate investment in 2018, according to research published today by JLL. The report claims that investors continue to favour cities they are familiar with and that have well-established investment markets and high levels of transparency. Well-known, large gateway cities with the world’s deepest concentrations of capital, companies and talent continue to dominate the top ranks. Twelve cities–London, New York, Paris, Seoul, Hong Kong, Tokyo, Shanghai, Washington DC, Sydney, Singapore, Toronto and Munich–have appeared in the top 30 ranking every year for the past decade and account for 30 percent of all real estate investment. More →

Don’t be a turkey, get on the commercial property gravy train

Don’t be a turkey, get on the commercial property gravy train

Last week, the RICS Commercial Property conference tackled the biggest issues impacting the built environment sector, arming delegates with fragments of the formula for future success. The morning CEO Question Time panel put a trio of CEOs in the spotlight. In addition to airing concerns about the current political climate, rapidly shifting societal attitudes, diversity and inclusion, the ageing population coupled with the ongoing housing shortage, climate change and the complexities involved in exploring new business models to drive and diversify revenue, they all zoomed in on the accelerated pace of change we’re witnessing, crowning it the key challenge for today’s C-suite.

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Decline in new UK commercial property construction work within private sector

Decline in new UK commercial property construction work within private sector

The results of the EU referendum have been detrimental to the commercial property sector with the number of constructions continually decreasing, according to an analysis of the figures by Savoy Stewart. With figures from the Office of National Statistics (ONS) showing a monthly decline in the number of new UK commercial construction work undertaken by the private sector since December 2017, the property firm analysed the number of commercial properties available to let in 20 of the biggest cities in the UK.

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Demand by investors for UK commercial property remains strong

Demand by investors for UK commercial property remains strong

Demand by investors for UK commercial property remains strongThe level of demand for UK commercial property remains strong, despite continued lack of clarity over Brexit. According to the latest GVA review of commercial property investment market, European investors were more risk averse to the UK market because of the uncertainty caused by Brexit but demand from overseas investors, particular from China and the Far East, strengthened in 2018. Domestic investors have also made a ‘come-back’ to the UK market and have accounted for approximately 12 percent more acquisitions in 2018, compared to the previous year. In the North East, the lack of availability of investment property is one of the biggest factors affecting growth and there remains strong competition, particularly for prime well let assets. Regardless of political uncertainty, the fundamentals of the UK commercial property market will continue to make it an attractive place to invest, with London remaining the number one priority target of investors outside of Europe. Overall, the report concludes, the UK commercial property market will remain attractive with the exception of retail.

Poor mobile coverage in commercial buildings is jeopardising business

Poor mobile coverage in commercial buildings is jeopardising business

Poor mobile coverage in commercial buildings is jeopardising businessesThe majority (89 percent) of employers say in-building mobile coverage is important to their business, but only 17 percent of businesses have full bar indoor mobile coverage, claims a new report. ‘Building Connections’, commissioned by Vilicom argues that as 78 percent of adults own a smartphone and check it every 12 minutes on average, and with the number of UK landlines falling 35 percent from 10m in 2010 to 6.4m in 2017, a lack of mobile coverage seriously threatens productivity, revenue, damage to reputation and customer satisfaction for organisations of all kinds.

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Investment in London commercial offices unlikely to be changed by Brexit

Investment in London commercial offices unlikely to be changed by Brexit

London’s commercial office appeal unlikely to change because of BrexitInvestment in City of London offices is up by 7.6 percent for the same period last year reaching £9.47 billion as of the end of October 2018 – while the West End market is on track to reach at least £7.4 billion before the year is out. This is up on the £7 billion turnover seen in 2017, according to Savills. Stephen Down, executive director and head of Savills Central London investment team, says: “Demand for central London offices has remained buoyant throughout 2018. While we may not see the year set any new records, annual volumes look set to either surpass or draw very close to those of 2017. More →