In the past few weeks our MI network has seen a dramatic increase in enquiries for commercial property. The still weak pound is the main reason, and of course the ability to buy at a lower price. This will have a big impact on commercial property ownership in the UK, with many properties be sold to overseas buyers.
On our site we have had over £500M of enquiries for commercial assets, and buyers are looking to increase their portfolios to include higher yield returns, some of these reach 12-13% / year. I think residential agents will need to diversify their portfolio towards commercial.
There has been talk that commercial property will be hit harder because of businesses folding more frequently, but I personally do not believe this as the UK's growth in the new commercial stock has dwindled over the past few years, so the demand will come back with the economy. Also new entrepreneurial businesses which is a typical result of a recession, will also require premises. Given these reasons, I believe the commercial property market will be just as strong in recovery as residential.
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