Property Investors 'Making Compromises' On Prime Assets

Many real estate investors are now more prepared to compromise on certain criteria when seeking out prime commercial assets in the UK..

Many real estate investors are now more prepared to compromise on certain criteria when seeking out prime commercial assets in the UK, it has been asserted. Kelvin Davidson, property economist at Capital Economics, explained that there is more room for manoeuvre, particularly in terms of the length of leases that investors are willing to take on. He noted that this is the case as long as the property is in good location and a stable tenant has signed up to occupy the space.

Mr Davidson went on to point out that there is a widening gap between commercial real estate in London and other areas of the country, stating: "Anything that is outside central London, the bigger regional city office markets or some of the bigger shopping centres is basically going nowhere." This restriction on the number of locations considered to be prime among investors has contributed to their willingness to compromise, he added.

Last month, DTZ revealed that the UK's top 20 malls and high streets currently have their highest occupancy rates for two decades. According to the organisation, vacancy rates in such locations stood at 2.55 per cent in September, down from the three per cent recorded a year earlier.
 

- Friday 07 October 2011

*This page is provided for information purposes only and should not be construed as offering advice. Flex Profit Hub is not licensed to give financial advice and all information provided by Flex Profit Hub regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.