Commercial Property Pundits Forsee Both 2009 And 2010 As Bleak
April 9th, 2010 | 
Author: Commercial Property Pundits Forsee Both 2009 And 2010 As Bleak Years
Asked what he expects from the commercial property market next year Ian Cullen Founding Director of IPD said:
“The outlook for the commercial property market in 2009 is undoubtedly bleak. Were not offering a forecast of X percent or Y percent but the key question is the extent to which a full scale recession kicks in to further damage occupier demand. It is pretty hard to believe that yields will be pushed much further out as a result of pure investment caution. What will happen next and what is already happening is a pattern of falling rents which reflects lack of occupier demand in the financial sector. We know the problems there. The retail sector beginning to suffer through failures in the High Street and elsewhere and a period of some length in the early 90s that was 40 months of negative rental movements.
Circumstances were very different in the early 90s. The bubble that was burst a rental bubble not a yield bubble and so we dont necessarily anticipate the same sort of playing out of the market in 2009 and 10 as we saw in the early 90s. But to anticipate a return to positive total return territory in 2009 I think is very very optimistic indeed”.
Economists are now starting to write off 2010 as well as 2009 as being bad years typical of them is Charles Davis Economist of CEBR said:
“I think 2009 we see a full year of contraction in the overall economy obviously in that consensus view. 2010 we saw the Treasury forecast in the prebudget report as perhaps too optimistic. They forecast something of a bounce back in 2010. We see 2010 as actually relatively difficult. So another probably reasonably stagnant year then. 2011 holds more promise. But we do see this as a very serious downturn.
I mean the Bank of England acting as it is may well help to get things moving 12 18 months down the line. But there are serious risks as banks go through this deleveraging process and we reassess where we are in the market.”
About UK Business Property
Whilst there are more than 20 portals covering residential property in the UK the commercial property market remains relatively unserved with no site having a majority share of the total available commercial property listed. The internet has taken a significantly greater share of all advertising spend each year as it continues to prove that it is the most effective medium for advertisers to reach their audience.
Traditional estate agency methods remain quite successful in reaching the local market around a property but do not capture leads from the national and international markets at all well. With increasing mobility of populations and business in the global village it makes sense to expose commercial properties as efficiently as possible to the whole market. In 2006 there were 6 million searches based on figures from Yahoo Search made on the internet in the UK for commercial property of all types. Many of these searches will be fruitless as major search engines do not expose many of the available properties at present.
UK Business Property aims to change this by offering commercial agents important incentives to bring all their properties to the whole market. By linking to UKBP agents will bring more traffic to their websites. For agents who do not yet have a fully featured search on their website UKBP offers it’s advanced search functions free of charge in an easy to implement solution. The advantage is that you keep your visitors on your site and build your brand in your local market while receiving leads from a national and international audience.
UKBP is committed to supporting agents with advantageous Agency Terms and a profitable opening offer to it’s Founder Members who Register and upload their properties before 28th February 2007.
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