Distressed commercial property sales increase worldwide

The survey also asked surveyors whether the level of interest from specialist funds in distressed properties was increasing.
Most agents reported a rise in specialist funds expressing interest in distressed commercial properties.

Those markets at the forefront include Italy and the UK, with Germany, US, Hungary, Spain and Ireland closely behind.

Oliver Gilmartin, RICS senior economist said: "The number of distressed properties coming to market rose across every global region in the second quarter although record low interest rates may be limiting the pain for some landlords.

"Falling rents and rising corporate bankruptcies are likely to increase the incidence of distressed properties in the coming quarters as problems for landlords in meeting income covenants pick up and refinancing costs remain elevated.

"As such, transaction activity in distressed properties is certainly set to rise in 2010 as interest from specialist funds gains traction."

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