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- Helen Murch, Principal Planner, Surrey Heath Borough Council

BLOG ARCHIVE - August 2011

More problems for the High Street

18th August 2011, by Administrator

Depressing news about further retailer failures confirms the continued weakness of the consumer and no signs of recovery.

The good news is that some of this vacated space was snapped up quickly, demonstrating that the world does not stop, but will our high streets ever...

Categories: Commentary



All markets, good and bad, provide opportunities and reveal failures

17th August 2011, by

A number of revelations last week demonstrate just how volatile the current property market is, particularly for investors and developers. Shares in the UK's largest REITs of Land Securities and British Land fell around 8% at their lowest point. The message here is that rental growth and income generally looks uncertain and under pressure, particularly in the secondary market.

Moody's report on the European commercial mortgage/securities market advise that values in the secondary property market will not recover before 2013 and lending in markets will be subdued throughout this year and next year. Those lenders who are prepared to lend will only do so against prime or top quality stock and at a maximum loan to value ratio of 65%.

Categories: Commentary



UK Commercial Property - A Safe Haven?

4th August 2011, by

The last two weeks have seen turmoil in the Euro zone with the Greek debt crisis and uncertainty over the budget allocations in the USA. No wonder the financial markets are in disarray. Stock Exchanges around the world have been behaving like yoyos and precious metals have reached record values, despite huge selloffs and a crash in prices just a few months ago.

Uncertainty is not good for any market and commercial property is no exception. So with this background does UK commercial property become a safe haven or part of a boiling sea of distress?

There is no doubt that investment info in UK commercial real estate between Q1 2010 and Q2 2011 produced a significant inward shift of yield against very low pricing points in Q4 2008. However, after 6 quarters of relatively stable activity of over £8billion per quarter, Q2 2011 has seen a downward trend of approximately £6.6billion according to the UK investment transactions report issued by Lambert Smith Hampton last week.

Categories: Commentary