Elsewhere, unprofitable shops continue to close and a number of operators remain under threat from tough trading conditions and high levels of debt.
 
Knight Frank research indicates that recent failures of HMV, Jessops and Blockbuster will push national vacancy rates up and put further downward pressure on rental values. However, Knight Frank said it was seeing renewed interest and aggressive bidding for the best stores within these portfolios. It expects to see further polarisation of both high streets and shopping centres between the regionally dominant and sub-prime locations.
 
In the investment market, investors have continued to target prime locations Continue reading →

An easing in commercial real estate credit markets and the persuasive valuation case for UK commercial property should mean that prices for the market as a whole will be broadly stable in the next 12 months, in contrast to a fall of approximately 3% over 2012 (source: IPD Quarterly Index for all property).

Total returns are therefore likely to be dominated by income return, currently at around 6%. Given the attractive level of yield, whilst sentiment is likely to remain relatively volatile, LGP sees upside risk to medium-term total returns from a positive repricing of property as an asset class.

Martin said: "Three Continue reading →

Total investment turnover for central London was £13.8 bn in 2012, up from £9.6 bn in 2011, and higher than the ten year average figure of £10.8 bn. 

In 2012, overseas buyers invested £9.6 bn, the highest figure on record, and nearly 70% of total activity. In 2000, overseas buyers accounted for 24% of deals. 

This is the fifth consecutive year that foreign investors have accounted for the majority of investment purchases by volume.

Leasing Market

Take-up of office space in the leasing market was 9.6 m sq ft in 2012, which was down on 2011 (10.7 m sq ft). 

The vacancy rate (available office space Continue reading →

For the survey as a whole, more locations recorded rental increases than declines, and more saw a drop in yields than an increase.  Improvements were most evident in locations with stronger economic fundamentals, or those that are proving most attractive to real estate investors.  By contrast, many of the weaker signals were concentrated in southern Europe, smaller CEE markets and regional UK.

At aggregate level, yield movements in Q4 2012 were moderate – as has been the case for some time now – but the direction of movement was notable.  The office yield for the EU-15 dropped by four basis points following Continue reading →

Deloitte real estate partners predict that while 2013 will show values lower over the calendar year as a whole this will reflect falling values at the start of the year. The recovery will not be seen in the data until later in the year and not with enough velocity to reverse these falls. However, this return to rising values will mark the bottom of the current cycle.

Anthony Duggan, partner and head of research at the firm, said: "We are fully aware that this could be seen as a somewhat heroic prediction given the huge uncertainties present in the global, European and Continue reading →

The UK Commercial Property Lending Market report by De Montfort University, the largest of its kind to look at UK commercial property lending, reports that the slow unwinding of commercial property debt is continuing. The survey of 74 lending teams from 65 banks and other lending organisations reports that debt with a LTV of more than 70% – the absolute maximum many lending organisations are likely to provide senior debt, rendering anything in excess potentially un-refinaceable – fell by £12billion from £106billion to £94billion, in the first six months of the year as lending organisations took affirmative action to rebalance their Continue reading →

CBRE’s report shows that the T&T sector is now driving leasing activity across Europe. Dublin and now London are established as Western Europe’s tech hubs, with Berlin, Munich and Hamburg seeing increased take-up by T&T companies. In Eastern Europe, a handful of markets are emerging as popular destinations for companies in the sector, including Warsaw and Moscow, where a spike in T&T leasing activity has been evident over the past 18 months.

In the first half of 2012, T&T companies accounted for a quarter of all take-up in Dublin, the highest proportion of any European market. A number of high profile tech Continue reading →

But the BPF fears the proposals may actually slow down development, and in some cases deter investors from investing in property altogether due to the additional cost and regulatory burden of complying with the Directive.

Of particular concern are three proposals which have crept into the Directive since the initial consultation:

* Mandatory screening – while the drafting is unclear, there are fears that any planning application or permitted development would require a screening exercise to determine whether an EIA is even required. This will add an immense burden to the applicant, particularly smaller and individual developers, and also to local authorities;
* Continue reading →

When commercial premises, such as a shop or an office, become vacant the owner is not required to pay business rates for three months. For industrials and warehouses the rates holiday is six months. However, after this period, these charges – known as Empty Property Rates (EPR) – are applicable at the full rate, leaving many with a tax bill which they have no means of funding.

Worryingly, with industry still suffering, over two thirds (68%) of respondents claimed that commercial property floor space is currently vacant for periods of over six months, meaning that the problem of unmanageable taxes is widespread Continue reading →

Is Your Property Exempt?

Some properties are exempt from paying business rates altogether, the Valuation Office will not assess these for rateable value. The following properties are exempt:

- Agricultural Properties: This includes land and buildings as well as fish farms and associated dwellings. Market gardens and parks are also included as being exempt.

- Places of Worship: Buildings that are registered as a place of public worship shouldn’t have to pay business rates. This also includes associated buildings such as church halls. A property that exists to conduct the administration duties of a place of worship will also avoid these fees.

- Buildings for Continue reading →