Search Results for: investment

October 25, 2016

Nearly a third of investors say Brexit offers commercial real estate investment opps ⁰

by Sara Bean • Cities, Facilities management, News, Property

The recent warning that the major banks are planning to leave the Capital following the Brexit vote has understandably caused some concern within the commercial property sector; so it’s cheering to hear that three in ten (30 percent) institutional investors actually believe Brexit will either increase or significantly increase European commercial real estate investment opportunities. A further one in four (23 percent) institutional investors believe that Brexit will have no impact on commercial real estate investment opportunities. According to a new study by BrickVest, following the UK’s decision to leave the European Union, nearly two in five (38 percent) institutional real estate investors cited London as the top European city to invest in commercial real estate, ahead of Berlin (36 percent), Munich (31 percent) and Paris (22 percent). However, one in five (21 percent) cited both Dublin and Hamburg and a further 16 percent selected Frankfurt, highlighting a clear positive trend towards German commercial real estate. Indeed 40 percent of the top ten European cities were German.

June 9, 2016

Commercial real estate investment strong despite Brexit-related slowdown ⁰

by Sara Bean • Cities, Facilities management, News, Property

Partly due to the uncertainty leading up to the EU referendum, employment intentions within Financial and Business Services (FBS) have slowed, but rental growth within the commercial property sector should remain healthy, particularly if the ‘remain’ vote prevails, the latest Real Estate investment forecasts from Colliers has revealed. Offices will continue to drive rental growth across the commercial property sector and it’s expected that rents will rise by 6.8 percent this year and average 3.9 percent in 2016-2020. Although it’s slowed a little, Central London will continue to attract demand and push the overall rate up, with a still strong growth of 8.4 percent in 2016. In addition, the artificial barriers between individual London ‘villages’ are increasingly breaking down, creating a fluid market for office occupiers in the capital, with more options for geographical relocations and expansions. This will continue to benefit the Rest of London, which is expected to see rents increase by 8.1 percent this year.

February 2, 2016

Record investment in UK commercial property in 2015, but trouble ahead ⁰

by Mark Eltringham • News, Property

A near record £67.5 billion was invested in UK commercial property in 2015, making it the second strongest year on record and 46 per cent above the 10-year average, according to research from commercial property analysts CoStar Group. Momentum slowed sharply in the second half of the year, with investment down 19 per cent from the previous year. According to CoStar, this reflects the fact that investment activity has been especially strong over the previous 18 months and good opportunities are harder to find, but also that global economic and political uncertainty are impacting investment decisions. Nevertheless, 2015 was a strong year for the UK’s Big Six regional cities. Office investment increased 16 per cent to £3.2 billion, which is the highest level since the recession and more than double the eight-year average. Foreign investors seeking standing assets and development opportunities underpinned much of this investment.

January 26, 2016

2015 was a record year for commercial property investment ⁰

by Sara Bean • Facilities management, News, Property

At £64.3bn, investment in UK commercial property reached a new annual record last year, 4 percent above 2014, according to new research published by Lambert Smith Hampton. This performance was bolstered by a strong end to the year, with investment between October and December reaching £15.7bn, 23 percent higher than in the previous quarter. Investment in London reached £26.9bn, 4 percent higher than in the previous year. According to the report asset management will be vitally important in 2016, as rental income will be the main driver of performance, and as such, pro-active asset management initiatives, such as investment in office refurbishments in areas with few vacancies, are likely to offer the best prospects for investors. Explained Ezra Nahome, CEO of Lambert Smith Hampton: “This means that knowing your market, almost at a building-by-building level, and understanding the dynamics of each locality, will be more important than ever.”

December 2, 2015

Lack of talent will hold back any investment in infrastructure and building ⁰

by Mark Eltringham • Comment, News, Property, Workplace

When faced with inconvenient facts, there is always a temptation to just ignore them. It’s a temptation to which the big thinkers of the political class readily succumb, especially when they’re selling an idea. So it was with George Osborne’s Autumn Statement, which maintained the Chancellor’s commitment to using public sector spending on infrastructure to boost the economy. This intriguingly Keynesian way of thinking seems pretty seamless, especially while the memory endures of what happens when you use credit to grow the economy. But it rests on the assumption that there is a limitless supply of the right people to build things in the first place. The flaws in this way of thinking are already becoming evident with HS2, a project that continues to drain talent away from the rail network’s already disastrous investment programme. A growing number of voices are raised to point them out on other issues too.

April 29, 2015

RICS reports surge in investment and demand for commercial property ⁰

by Sara Bean • Facilities management, News, Property

Demand for commercial property in the UK is growing close to its fastest pace since 1998. The latest RICS UK commercial market survey shows that there was a surge in investment and tenant demand in the first quarter of this year, which suggests stronger economic growth over the remainder of 2015. The UK had its 10th consecutive quarterly acceleration of demand, with 46 percent of respondents reporting greater interest. However, the availability of commercial property declined, with 38 percent of RICS’ surveyors seeing fewer properties on the market, the impact of which is higher rents. This is particularly apparent across the industrial and office sectors. Looking ahead, respondents expect the office sector to perform most strongly; with London leading the way, despite some concerns over the valuation of prime property in the capital.

January 26, 2015

Latest figures show record last quarter for UK commercial property investment

by Sara Bean • Facilities management, News, Property

Investment in the UK commercial property sector totalled £20.5bn in the final quarter of 2014 – a 26 per cent increase on the previous quarter and the highest quarterly performance on record. The demand for Central London offices was a key driver for this as in the final quarter of the year, investment in this sector more than doubled from the previous quarter. The latest edition of Lambert Smith Hampton’s UK Investment Transactions report reveals that investment in the UK regions increased overall by 41 per cent to £21.1bn for the year as a whole – the second highest figure on record. Overseas investors continue to be the largest buyers of UK commercial property, with investment from the US more than doubling year on year and interest from the Far East also increasing significantly. Click here for more information.

November 25, 2014

Focus of investment should be skills, broadband and local transport say CEOs

by Mark Eltringham • News, Property, Public Sector, Technology

The Government should focus investment on the development of skills and broadband if it wants to drive economic growth. That is the message from a survey of 100 British CEOs carried out by Grant Thornton. Key findings of the report include the fact that 70 percent of respondents would like to see better access to training and development opportunities, 59 percent want to see an improvement in digital infrastructure and 57 percent would like more spending on roads. The Government’s flagship schemes – the Heathrow expansion, HS2 and the proposed new trans-Pennine railway receive a lukewarm response, with the majority of respondents appearing more keen on greater investment in existing long distance rail services, local public transport networks and the greater use of the UK’s underutilised regional airports. There is also a mixed response to plans for greater devolution with support only if regional Governments don’t add another layer of bureaucracy for businesses.The report has been published ahead of next week’s Autumn Statement by Chancellor George Osborne.

October 13, 2014

HS2 will generate £40 billion in economic benefits and a surge of investment in office space, claims new report

by Mark Eltringham • News, Property, Public Sector

According to a report published today in The Daily Telegraph, the UK’s new HS2 high speed rail network will encourage housebuilding and commercial property development as part of a £40 billion boost to the UK economy. The report, produced by consultants EY, also suggests that new developments around the main stations along the route, including Birmingham, Manchester and West London would generate some £1 billion a year before the route’s completion in 2035, including some 850,000 sq ft of new office space. The newspaper claims the full report will be released by the Government this week as part of its campaign to win support for the controversial scheme and that its content will be a major talking point at this week’s MIPIM which takes place for the first time in London. It was revealed recently that the Government now expects the scheme to cost £73 billion, a figure which critics, including Mayor of London Boris Johnson claim could be spent more wisely.

April 9, 2014

Foreign investment fuels record quarter for London commercial property

by Mark Eltringham • News, Property

More London, Riverside

Foreign investment in London’s commercial property market has fuelled a record breaking start to 2014, according to a new report from Cushman & Wakefield. The influx of overseas capital dominated deals in the first quarter of the year and, in turn, drove total investment levels that exceeded £4.3 billion, three quarters of which came from abroad and was centred on East London and Docklands . The 32 deals covered in the report included the sale of the More London estate to a Kuwaiti investor for £1.7 billion and concluded the busiest quarter since 2007. According to the report, foreign investors are attracted by London’s status as a safe haven. Last month we reported how domestic investors were looking outside the capital for opportunities but the Cushman & Wakefield report now suggests that interest from domestic investors and occupiers is increasing as the UK economy improves.

January 23, 2014

UK commercial property investment in 2013 hits a six year high

by Mark Eltringham • News, Property

Last year marked a six year high in commercial property investment across the UK according to a new report from property information providers CoStar, driven by increases in regional markets and a sharp upturn of interest in Central London from overseas investors. A total of £52.7 billion of transactions was completed across the UK in 2013, albeit that two-thirds of investments were made in London and the South East of England. It was also a year for record breaking deals, notably the Broadgate office development in the City (above) and More London on the South Bank, each of which were valued at £1.7 billion. London was particularly attractive for Asian investors who CoStar claim see it as a safe haven and invested £9.2bn, up 80.6 percent on 2012.

May 28, 2013

Three quarters of London investment banks set to trim corporate real estate

by Mark Eltringham • Knowledge, News, Property

According to a new report from CBRE, nearly three quarters (72 percent) of investment banks based in London are looking to cut their corporate real estate portfolios over the next two years as they adjust to a changing global market for their services as well as structural changes in the UK’s regulatory framework. As well as trimming London based properties, the report says that banks will continue to relocate functions to the UK regions in an effort to reduce costs. Since the low point of 2009, rents in the City of London have increased from £42.50 per sq ft to about £55 per sq ft. The survey also found that just over a third (34 percent) of banks expect to see cuts as a result of mergers and acquisitions in the sector.