THE PROPERTY DEVELOPMENT REVIEW
What are your expectations for the commercial property market over the next twelve months? More pressure from financial institutions on underutilized properties. All the landlords need to offer fully fitted office space to lease - more capital injection. Less opportunity for rental reversion due current economic demands. Tenants are still understanding and assessing there requirements in line with their strategy on hybrid working conditions which affect the take of commercial space. There is still abundance of cash in the market place and although there is more caution around placement of capital with will located and desirable asset keen sort, whereas secondary quality will be a lot more difficult to use.
Talk us through the most significant deals you have transacted in the last twelve months. We have sold a number of commercial development sites where the developers have an anchor tenant under AFL prior to purchasing which obviously de-risks the project. On the other hand we have sold commercial sites to developers who have the cash backing and the foresight to spec build the project. Predominately owner occupiers have purchased vacant commercial asset to strategically position their business or land bank future development potential. The investment properties we have sold are still low investment returns which typical have been sold to high net worth individuals who want stress free long term returns
Summer 2022/2023 – 29
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