02/02/2012
Category: Commercial property insurance
Commercial landlords looking to add properties to their portfolios have been advised that the London market has more "structural advantages" than other areas of the UK.
The UK as a whole looks set to return to a small and brief recession early this year, which could impact the tentative recovery in the commercial property market.
While London properties are the first to feel the impact of a global slowdown, according to Andrew Burrell, head of forecasting at Jones Lang LaSalle, it is also the first market people look to kick-start a recovery.
These factors make it unlike other cities, and provide it with an extra resilience that is attractive to commercial landlords during times of economic uncertainty, Mr Burrell claims.
He goes on: "It is a big market - it has a big range, [with] a lot of structural advantages that other markets don't have. When other markets are looking a bit weak, people always seem to want to come back to London."
Foreign investors are also aware of this trend, meaning those with substantial private wealth will always be looking to get the market moving again after any slowdown.
Mr Burrell explains: "London gets a lot of private wealth and people who are investing - not so much looking for rates of return - [but] for a safety of income and maybe [for the] long term.
"London has a much broader range of people interested in it, it is a deeper market. It isn't just people from the UK - it is people from the Middle East and Asia, parts of the world that are doing quite well."
Meanwhile, commercial landlords across the UK have been advised that they can help the sector grow by ditching the "outdated" system of demanding rent on a quarterly basis, according to the British Retail Consortium.
Such a system proves to be a stumbling block for many smaller firms in the current economic climate, it claims.
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