Studio Flats London

Expert commercial property predictions remain extremely mixed.  It appears that the long-term effects of the credit crunch have left even the commercial property specialists confused.

Looking at current and past performance figures we can see that there is physical evidence that commercial property rents are continuing to decline across Europe, the Middle East and Africa (CB Richard Ellis’s latest research) and that the fallout from the recession is persistently affecting SMEs and large corporations alike.  Even Tesco our biggest supermarket chain are reducing their spending on new properties in order to decrease their costs during the recession.  However, this doesn’t quite tell the full story and in a similar pattern to Sainsbury’s and the other large grocers Tesco are still planning to expand their UK selling space by six to seven percent each year by developing their existing stores.  Comparable to residential home owners who rather than looking to purchase larger properties are instead looking to make the most of the space they already have.

The declining rental values are visibly affecting UK commercial property values and the Royal Institute of Chartered Surveyors (RICS) believe that our commercial property market is only now halfway towards recovery and won’t recuperate for at least another two years.  These predictions are in stark contrast to other industry experts who believe that 2009 will see the end to the current declines.

Confidence in commercial property investment does appear to be improving however with investors feeling far less pessimistic than at the end of 2008.  This combined with the current weakness of the pound and the fall in commercial property values over the last twelve months mean that investor interest in London commercial property has increased significantly over the last month alone.  Foreign investors are leading the way with many deciding now is the prime time to invest into UK commercial property.

Despite the increased interest investors are being warned that rents are still likely to continue to fall throughout 2009 as vacancy rates increase and the recession takes its toll.  Tenants are continuing to enjoy the declining rents which simply didn’t occur at the same pace in previous commercial property recessions due to the fact that leases are now much shorter and more flexible with increased break clauses.

Review

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1)    Negotiate rents – in this current buyer led market landlords have to ensure that their pricing is competitive to stop their commercial property from being left empty.  As a potential tenant you should be able to negotiate lower rents for your business in key London locations.

2)    Look for increased inducements – rent free periods are now generally an automatic feature for most office lettings.  Take advantage of the fact that during this economic downturn landlords are supplying increased inducements and incentives in order to entice you to choose their commercial property over another.

3)    Capped service charges – now more than ever before businesses have to keep an eye on costs and run to strict, nonnegotiable budgets.  By asking your landlord for capped service charges you will be able to keep an eye on costs and have the comfort of fixing your expenditure on the servicing of the building.

4)    Arrange shorter lease agreements –during these unpredictable times you are no doubt wary of taking on too many financial commitments.  More and more companies are looking for short-term rent agreements with short-term lets increasing by over 80% in the last few months alone.  It is now not uncommon for businesses to take up contracts of around eighteen months when in the past this figure could have been anything from ten to twenty years!

5)    Lock-out agreement – with the ever increasing credit crunch focus on cost cutting businesses have no wish to waste money on a property only to be gazumped by another tenant before the contract is in place.  By asking your potential landlord for a lock-out agreement you will gain the security of knowing that you have an exclusive period to complete.

6)    Take advantage of market conditions – a recent report by the Daily Telegraph found that most tenants are able to find London offices quicker and with fewer viewings than ever before, saving valuable time and resources.

7)    Recession bargains – take advantage of the credit crunch.  Exclusive areas such as Mayfair and St James have seen sharp rent declines due to the economic impact on the hedge fund industry.

8)    Live the London lifestyle, for less – Marylebone in particular is attracting cost-cutting tenants who still want a prime central London lifestyle without the high prices.

9)    Ask for detailed information – the current tenant led market means there is now almost too much choice for you in regards to which commercial property to let.  Request comprehensive, easy to read literature and information on each of the properties you are looking at which will help you to weigh up the pluses and minuses of the area, property, etc, and make the letting decision much easier.

10)    Expand / move – if your business is currently experiencing sales growth or sustained profits despite the recession then now could be the time to lease a great new commercial property right in the heart of London.  The London commercial properties market is now officially tenant driven so you could end up with the type of commercial property you had always dreamt of at a fraction of the cost you would have paid a couple of years ago.

The Fourteenth Edition of Real Estate Finance and Investments prepares students to understand the risks and rewards associated with investing in and financing both residential and commercial real estate. Concepts and techniques included in the chapters and problem sets are used in many careers related to real estate. The material in this edition is also relevant to individuals who want to better understand real estate for their own personal investment and financing decisions. The Fourteenth Edition is designed to help students learn how to evaluate the risk and return associated with the various ways of investing and lending. Upcoming students who are interested in this field can use this book as a guide to perform the right kind of analysis to make informed real estate finance and investment decisions.

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Areas such as Canary Wharf that are at the heart of the financial services district in London have already experienced many sharp decreases in office rents.  Landlords are offering their once lucrative tenants decreased rents and better value inducements in order to keep their London commercial property occupancy levels up in an attempt to try to counteract the effects of the credit crunch.  Investment banks and commercial banks have had a tough year and nothing demonstrates this more than the increasingly empty office spaces in the centre of London’s financial district.  However, it can be argued that despite this it is the London hedge fund businesses that have been the most hard hit.  These once lucrative companies used to have their pick of swanky London commercial property but as the credit crunch has taken its toll their once plush and buzzing offices are being vacated at an alarming rate.  During the hedge fund sector boom the cost of London commercial property was of little importance to these businesses.  The high profitability that many of them enjoyed meant they were willing to front the cash and substantially outbid any rivals in order to get their staff into the right location and office space for their business.  Swanky areas such as London’s Mayfair were buzzing with profitable hedge fund businesses that were willing to pay steep rents in order to be located in a prime London commercial property location.However, the current economic downturn has hit these businesses hard.  The downturn has forced hedge fund businesses to either vacate their office space or renegotiate rents as part of a cost cutting exercise.  This has left landlords with little choice than to reduce their rents and increase their inducements or see their office space stand empty.  As a result leasing rates for swanky London commercial property offices in plush areas such as Mayfair and St Jame’s declined by almost thirty percent last year. It is not just the financial businesses in London that have been affected by the downturn.  Average rents fell by approximately 19% across London at the end of 2008 compared to the end of 2007, however, it is the financial areas that have been hardest hit with rents falling significantly below the average decreases.Despite the hard ships currently bestowing London commercial property owners and investors the next few years are expected to bring some amazing UK property investment opportunities to cash rich buyers who will be able to take advantage of some great commercial property offers and deals.

The hikes in UK property prices in the last decade has had many in the property industry reeling. Having defied expectations on a number of levels, the strength of house price increases has many pundits at a loss as to where the property market will go next. For instance, while some predict continued growth, others claim that the property market is likely to see a slow period during the last half of 2007.

However, a recent study by leading property site Home.co.uk has found that one community of property owners has benefited from the steep house price increases of recent years – homeowners in London. Despite the four rises in the Bank of England interest rate since August last year, London property prices have seen no sign of slowing down their skyward ascent. In fact, Home.co.uk’s latest Asking Price Index report infers that the average property for sale in London now carries a staggering price tag of £336, 900.

And while this news will not be favourable for first-time buyers hoping to get a foothold in the property market in London, the rising value of London homes is likely to please many existing homeowners with properties in the capital. Moreover, this phenomenal growth has stood London homeowners in good stead when it comes to borrowing, as the breathtaking levels of property inflation means it’s easier for them to find attractive secured loans.

A secured loan is a financial arrangement in which the borrower promises an asset – like a house or a car – as effective collateral against the loan in question. Essentially, the loan is ’secured’ against the asset so, in the event of defaults in payment, the lender can take possession of the collateral and may sell it on in order to regain the amount of money originally lent to the borrower.

Secured loans which use property as collateral are also known as mortgage loans and, as the price of houses for sale in London continues to skyrocket, secured loans are becoming increasingly popular with homeowners in London. The high value of London property means that secured loan lenders are able to offer lower rates of interest to London homeowners than might be available through unsecured loans – a factor that is sure to appeal to homeowners who are keen to release some cash to make essential refurbishments to their house, or simply to reduce their monthly mortgage repayments.

What’s more, finding secured loans has never been easier. London homeowners keen to take advantage of their rising house value will be able to find a range of financial sources online that allows consumers to compare secured loans across the UK loan spectrum. If you own property in London, using these simple tools will make it easier for you to find the secured loan that best meets your personal circumstances – while at the same time helping you make the most of your valuable asset while the time is right!

Opening an office in London can be a hugely beneficial step for a company to take. However, before you can begin reaping the benefits that the capital has to offer, you need to find new premises. In order to ascertain whether a commercial property in London is suitable or not, you will need to ask yourself a few pertinent questions.
The first consideration should focus around the sort of property you require and its location. Would it best to have the premises nearer to the business’s employees, its suppliers or its customers? Alternatively, it may be more important to have the business located close to a transport network, such as rail or road systems. And, importantly, the premises have to be within your budget.
Should you manage to find a commercial property in London that is suitable, it may be prudent to approach your bank manager or at least speak to the firm’s accountant to ascertain the impact that the new premises will have on the company’s budget. Next you will need to negotiate with the landlord to get rental terms that are favourable to you – often a difficult and frustrating process.
On the other hand, you may feel it better to place the whole procedure in the hands of a property expert. A commercial estate agent will have a great deal of experience in sourcing available commercial property in London. Whilst you will have to pay for their services, it is worth bearing in mind that mistakes with property can be extremely costly and have even in some cases resulted in bankruptcy.
A commercial property agent will have resources available that you will not, such as a database of existing and up-and-coming commercial properties in London. They can also help you organise the move within the parameters of your budget, taking into account things that you may have overlooked. Factors such as producing effective relocation plans, choosing suppliers during and after the move and a constant budget report can all be implemented by the appointed relocations manager and contribute towards a smooth and efficient process. A commercial agent can also take care of things like surveyors and solicitors and also ensure that the contract you sign provides you with favourable terms, taking into account factors such as the rent and possible increases, the length of the lease and how easy it is to give it up, to whom the responsibility of insurance falls, who is liable for repairs, service charges, financial guarantees and lease protection. These are all commitments that you can expect to find in an agreement, but a commercial property agent will be able to negotiate terms on your behalf that you may not be able to.
Renting a commercial property in London generally heralds a new beginning for most businesses; to ensure that your rental goes as smoothly as possible and does not affect the operation of the company, it would be prudent to research just what a commercial property estate agent in London can offer you.

When it comes to buying property in London, the number of choices available to you can be overwhelming. It’s easy to get carried away when looking for your ideal home in Britain’s most exciting city. However, it’s important to be realistic: with the average cost of a London property now reaching over £300,000, you need to be sensible when it comes to your London property search in order to find the home that will best suit you and your budget.

First and foremost, you’ll need to determine how much you can actually afford to spend as this can really affect your search. Typically, property in Central London is the most expensive, with the price of a single bedroom flat often in excess of £200,000. However, as you move further away from the city centre, London properties tend to become less expensive, with property in East London typically costing less than properties for sale in North London (although the 2012 Olympics may alter this pattern). So, if staying within your budget is your primary concern, then excluding central London from your thoughts should help narrow your search.

However, while location is of considerable importance, it’s also crucial to figure out what you’re looking for when it comes to your ideal home, and to make these desires fit in realistically within your property search. After all, there’s no point looking at property if it doesn’t fulfil any of your requirements!

Even if your individual budget is quite restricted, you’ll be able to find a city centre property that meets your requirements and suits your finances if you’re able to pool resources. If you’re buying with your spouse or partner, for example, a one-bedroom property in Chelsea may become more affordable.

What’s more, if you feel the need to live where the action is, why not opt for a house in East London where property prices still remain lower than many other areas of the city. With the 2012 Olympics looming near, the area is soon to be the hub of regeneration and will be the area to which all eyes will turn come the Olympic tournament. As a result, investing in an East London property today may reap a number of benefits in the future.

On the other hand, if one of your chief desires when searching for a property in London is a garden, or a multiple-bedroom property to house your large family, then searching for a house further outside the city centre is a more realistic expectation.

Where ever you choose to look for your ideal home in London, make sure you keep your budget in mind without compromising on your desires and requirements.

In business terms, London offers businesses facilities, services and opportunities far beyond the reach of any other location in the UK. It is facilitated by five major airports, each one leading directly to other major European sources of trade and industry, in addition to its international links further afield. Indeed, Europe is now closer than ever before; with the Eurotunnel, flights and ferry services to a variety of European locations, a business trip across the channel can be undertaken in a single day.
London itself is also serviced by all the major road and rail networks, making the transport of goods incredibly convenient and, in addition, allows delegates to travel to and from business conferences with great ease. Because London has built up and evolved around business, it also offers a broad range of amenities and facilities for the prudent-minded business-owner to take advantage of.
Most people assume that a London address comes complete with a London price tag. Whilst this may have been true in the past, the current economic climate has seen landlords dropping their rents to an all-time low and offering financial incentives to pull potential tenants through the doors. This is the result of the banking industry having downsized their workforces in the face of the credit crunch. Rather than operate a half-sized staff in full-sized offices, many of them have vacated their premises, leaving a surplus of commercial property in London. In turn, this has seen the rise of the tenant’s market, as landlords would rather be receiving some rent, rather than no rent at all.
For those considering relocating to a more prestigious address or taking up commercial property in London for the first time, there has been no better opportunity. In order to ensure that you get the commercial property London has to offer your business – and at the best price – you would be best advised to hire the services of good commercial property agents.
The best commercial property agents in London are likely to be independent, meaning that they will have no loyalty to a landlord or firm; their loyalty is to you, the client. With this established, they can use their powers of negotiation to secure you the best deal. However, negotiating skills are not the sole qualities that make an agent worth their salt. Good commercial property agents will have an insider’s knowledge of the emerging hotspots in London and those that are likely to flourish in the future. For example, the 2012 Olympics will have far-reaching effects in certain areas of London; a good agent would be able to help you draw up a long-term plan that allows you to tap in to any advantages offered by this.
Commercial property agents can also help with more practical aspects, such as deciding where your business should be located, in relation to local amenities. Using this advice, you can be sure that the flow of your business is not interrupted during the process and you may even pick up a new client along the way. They may also have an idea of any proposed changes to the locale, such as future road works or complex developments. All these can have some bearing on where you choose to establish your company.
Using a commercial property agent is a prudent way to stay ahead of the competition and find a business property that serves your company to the best of its abilities.

Rental properties in London are always in great demand to varied section of population for reasons ranging from education, new job to better opportunities in a different place. To cater to this varied need of rental apartments London, there are companies that strive to meet the gap between demand and supply of rent properties in London.

These property management companies not only help the potential renters by searching the best rental flats London but it also exceeds expectation of the landlords by providing them with a detailed background screening of the tenants  The service is known as tenant credit check and this helps the landlord to avoid future loss and associated costs involved with bad tenants.

So, to entrust one’s property on someone’s hand, it has become essential that proper scrutiny and investigation is done about the potential tenant. So, tenant referencing is the need of the hour for rental properties London and is a wonderful tool for successful property management as well.

Tenant credit check includes credit report of the tenant, employment verification information, and prior landlord testimony, history of eviction, county criminal records and even registered sex offender cases if any. The tenant screening service also provides with detailed account of how the tenant has met his past financial obligations ranging from loan amount, account balances to payment record. Besides, objective score on the creditworthiness of the prospective tenant, the landlords can also get information on bankruptcies, liens, suits, foreclosure or judgment if any against the tenants.

Each and any of this information can be requested by the landlords through separate report request or one can also go for combined package offered by most property management companies dealing with rental properties. The services are offered round the clock through a simple online request or dialing up any credible real estate management company in UK.

In this case, the property management companies need to get a signature on the dotted lines from the prospective tenant for carrying out credit check against him. This is the first step to know how good the tenant is as because he might stay away from signing it if he has some irregular record.

To the landlords, a word of caution is to first assess the credibility of these tenant credit check agencies to get authentic information so that he can take an informed decision. Again, it is not a fool-proof system as because a person who has a great credit history might miss out in paying rent. But, the idea of tenant screening is to minimize future risk by choosing best possible tenant.