London commercial property is a good sector for investors to target,
a new report has claimed. Henderson Global Investor's property research team noted that there are opportunities for growth in both the retail and office sectors in the UK capital.
In particular, retail locations look set to perform well, associate director of research Angela Keane commented. "London landlords are reaping the benefits of both buoyant retailer demand and the distinct lack of space capable of meeting retailer requirements," she noted. And the positive outlook is not limited to prime locations, with Ms Keane stating that properties in other parts of central London are also highly desirable.
Earlier this week, Land Securities announced that it is investing 275 million GBP in smaller retail developments in a bid to meet demand in particular locations, especially on the edge of towns. The firm stated it has noticed an increase in the number of large retailers seeking new space.
Meanwhile, the predictions for London's office sector are also upbeat, with Henderson Property anticipating growth in this branch of commercial real estate over the coming years. According to the organisation, the city's position as the world's leading financial centre will help boost jobs creation as the global economy recovers, which will in turn result in higher demand for space.
Andy Schofield, director of research for property at Henderson Global Investors, explained that a significant proportion of office lettings in the City and West End regions have been taken up by overseas firms. As a result, "London should be a key beneficiary of the faster growth in global economic activity," he predicted.
CB Richard Ellis recently identified the UK's capital as one of the few European office markets expected to experience a recovery in development activity over the next two years. In a recent report, the firm revealed that robust property and rental values have helped garner interest from developers, with completions of office schemes in central London expected to triple in 2013, compared to 2011.
- Friday 22 July 2011