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.

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.

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.

Looking for the right kind of commercial rental opportunity can be a nightmare especially in London. From area to area, especially within the London commercial property sector, prices can catapult from low to high and without knowing the ins and out of the area and the average rates you are expected to pay, finding that commercial property in London can mean a lot of time wasting. The best way to save time is to contact a specialist commercial property agent who is used to the market even in this current climate of property unease. They can help you to find an ideal commercial property in an area of your choice or their recommendation. If you are new to London then this advice could be the difference between business success or failure and if it is office space you are looking for than the area can also have an effect on your clients. Letting commercial property in London in a struggling market place means that by your investment now you can secure a good deal for the future and at the same time make a small impact towards steadying out this fluctuating market place. Investment from overseas such as the Middle East and Germany has caused a rapid increase in interest for commercial property and some specialists see now as the turning point for the market. If so those who have been sitting back and waiting for the lowest point in the market to invest are running out of time. Commercial property London is an area which has been steadier than around the rest of the UK. Due to high demand the city has not seen as bleak an outlook since the start of the property crash and London remains a sturdy investment opportunity for those wanting to buy or rent London commercial property. Making the battle for your ideal property easier are the specialist agents, and so for help or assistance contact one that has considerable experience in the marketplace.

In this time of restless global finance there are many reasons why the purchase of commercial property is not a favourable option. And in any such market the time to lease has never been more appealing an option. ‘Why buy now?’

This is the question on many lips. In a commercial property market which is so unsteady it is the uneducated individual that put’s all their equity eggs in one basket. For a long term investment in commercial property, buying still may remain an area which could make a decent return, however it is essential that you way up all the pros and cons and get sufficient advice from a commercial property expert. Assessing the area that you are investing in is also of paramount importance.

If you are thinking of letting or buying commercial property in London then you will not only need the insider knowledge of the area, again the best people to contact are specialists in commercial property, but you will also need to assess long term plans for the future of the area. When looking into this it can often be that the area has plans for better transport links and redevelopment making it a good place to invest in commercial property. If you are leasing commercial property you may be looking into leasing a variety of different types of commercial property.

There are three main categories for commercial property, these being retail commercial property, industrial commercial property, and commercial office space. By renting any of these types of commercial property rather than buying you will be in the most positive financial situation. Firstly, you will not have any negative equity, and secondly you will only have rent to consider which will help for forward planning and cash flow forecasting which is always welcome in a difficult financial global market. If you are thinking of leasing commercial office space London then there is a large amount of office space available.

A popular option for renting commercial office space is serviced office space. This option generally means that you will pay a one figure monthly charge and there will be many additional services included in this price. Some typical inclusions for this fixed rate commercial property charge are electricity, in fact all utility bills, council tax, phone line rental and own phone line, broadband internet, manned reception, shared use of facilities like a kitchen and bathroom and in many occasions shower facilities and security. If you are a start up business then this area of commercial property London is often the most appealing option.

You can also often get short term flexible contracts on serviced office space and if you are working alone you may also want to consider the option of a hot desk in one of London’s prime central locations. Or if you are working from another area of the country you may wish to consider a virtual office with a London postcode.

Some of the best London commercial property in a central location can be hard to come by as regardless of any possible ‘credit crunch’ London commercial property demand for prime locations like commercial office space Holborn or commercial estate Covent Garden, is as high as ever.

When looking at the activity in the UK commercial property sector over the last year you can see a major difference in what has been reflected there in comparison to the type of continually positive results seen in the London commercial property sector. London commercial property in central London has always seen a high demand of interest and if you want to get hold of commercial property to buy or London commercial lettings, the best way to bag yourself a good deal is to contact a commercial property London specialist agency.

The commercial property industry is a completely different market to the residential property market and people don’t always understand this until they begin the process of finding a new London office space or a new London commercial retail outlet.

The guises of London commercial property fall into a number of categories, but to give a brief summary they can be split into three main sectors.

1. Commercial retail space

2. Serviced office space

3. Warehouse space

For many businesses finding a new office location can be a stressful process and when looking in a metropolis like London this stress can be multiplied. A way to make the whole process much easier to manage is to employ the services of a commercial property finder and a good tip if you are planning on following this route is to make sure you go with a well established and highly experienced commercial property agent. A commercial property agent, especially one which operates predominantly in the London commercial property sector, will be able to help you find an ideal property in your perfect central London location, negotiate on the best terms for you and help ensure the process runs smoothly.

The advice of a London commercial property agent can be priceless as inexperienced people can find themselves tied down to long inflexible leases with a higher rental price. If you have signed a contract for a number of years this can be extremely damaging to your business.

By seeking professional advice in the London commercial property sector you will stop landlords from taking advantage of your lack of knowledge while the commercial property agent’s local knowledge may also help put you in touch with other local businesses in the area which can help to boost your own business potential.

If you are moving to London from other parts of the country and have already had dealings in the commercial property industry it is still recommended that you contact a London commercial property agent as the market can almost be seen to function as if it is a separate economy to that of the rest of the commercial property market in the UK.

With the credit crunch in full swing it’s now the time to be cutting back on hefty overheads. Dump those long term leasehold contracts and get a short term and stable commercial property rental in London. A quick search for the area that you desire on a property website and you’re bound to find the right kind of place. Whether it’s a small office space for a few people or a whole floor in a warehouse workplace there are loads of options for location and size. You cut down on the long term fixed overheads too because who knows what the financial markets are going to do next?

I found a great place to work in the City on a year long contract, with a serviced office London. It suited my small business perfectly because of the short term contract and with everything included in one price, it enabled me to forecast my business cash flow with great ease and that’s very important in such a volatile market. One of the benefits of a serviced office is that the cleaners are thrown in to the deal.

This is perfect for me because of my messy workforce and the prices for cleaners for offices London are extortionate often reaching £20 for two hours work and they leave after a few months too. This added HR work is an unnecessary hassle and a complete waste of time. So I am so glad I now work in a serviced office London. Another plus of my newly found love for serviced offices is the included receptionist. This is an amazing addition which I previously never thought would have come with a serviced office London.

I used to have one of my staff answering all of the phone calls in our last office and once again this was a huge drain on our resources. For the point of sale side of my firm we also lease a commercial retail outlet in the heart of Covent Garden London. This is where all of our goods are sold to our customers and I never thought we could get such a good price for the outlet as we have. This was realised through a specific agent search for a commercial property London. This retail unit even has a kitchen out the back so the staff are pleased as it saves them money on expensive West End lunches. This commercial retail outlet we rent is also cleaned for us.

This saves money on man hours. At this important time to make cost cutbacks this is a great help. So overall I would never go back to trying to get mortgages for long term leasehold contracts on commercial property London. It just doesn’t make sense to do such things when there are so many benefits of getting serviced offices and commercial retail outlets on short term contracts.

Leasing commercial property in London is a whole different ball game from leasing commercial property in other areas of the United Kingdom. There are many pitfalls which leasers may miss if they are not familiar with this area of the market. If you are looking for a commercial property London then contacting a local property agent in London will ensure you are aware of the best locations and the kinds of price variations to expect in the area, as well as any other useful tid bits insider knowledge can get you. This will make sure that you get the best deal for you and that you are aware of the benefits and pitfalls from other local businesses before you take up residence.

So here is an overview about each major type of commercial property. The main areas of the commercial property market are shops, industrial units, and offices. Industrial units in the commercial property sector are most often available on flexible contracts and as a less competitive commercial property area you can come across some quite good lease deals. If you are thinking of leasing industrial property in London you will expect to pay the premium for the capital city location which is also why it is extremely important to find a commercial property specialist who can help you benefit from their expertise and assistance you in negotiating the best deal, they can even draw up a contract on your behalf.

Leasing commercial property in the form of retail shops is an extreme factor when assessing the possible success or failure of your business. Knowing your commercial property’s location inside out is essential as choosing the wrong location can mean instant stigma attached to your property. This can be a good thing, such as a commercial property Covent Garden address, or it could be bad if you are in an unpopular area with a high crime rate.

A further popular use of commercial property is the classic serviced office space. London is full of serviced office space and it is a really popular route to pursue as a serviced office provides a whole range of different benefits. Serviced office space London is popular firstly due to only having to pay one total sum of money for the rental of your serviced office which includes all bills such as electricity, heating, internet, cleaning, and manned reception. This not only saves hassle but makes sense as you have less need to use up precious time sorting out all those mundane bills. It means there are no unwanted hidden charges and you can focus on the more important things, like work! It is also great not to have to worry about cleaning, like the windows or emptying bins, as in a London serviced office all this is done as part of the deal!

The credit crunch has fully set in and experts have stated that we are on our way to a full blown recession. Real estate is at an all time low and London commercial property leasing and sales figures are at some of the lowest levels ever recorded. The London commercial property market has become a tenants market with buyer power increasing tenfold. In order to counteract the downturn in lettings landlords have reduced their rents, are offering better leasing terms and agreements and have provided high incentive inducements in order to see their London commercial property filled and not laying dormant.

Companies that have remained successful despite the current economic climate are finding themselves able to afford buildings and London commercial property lets that in the past would never have been available to them. Discount retailers are reporting unprecedented growth during these purse pinching times and budget hotelier Travelodge and cheap food retailer Aldi are prime examples with plans for a major nationwide expansion program in 2009 which will see the two businesses joining together to provide joint budget hotel and grocery outlets throughout the UK. Several SME businesses are also taking advantage of the lower rents and finding they are able to afford London commercial property that was previously inaccessible to them.

Although reports show retail sales figures are down year on year our retailers are still hanging on in there especially in our nation’s capital. The west end may be seeing fewer shoppers than a year ago but it is still outstripping the nation in terms of sales figures. London did experience a 0.08% year on year drop of shoppers visiting its stores in October but when you compare that to a national drop of 6.6% on the high street things suddenly aren’t looking so bad. Regardless of the impact of the recession London’s west end has outperformed the rest of the UK for the last three years.

Despite the gloomy news reports there are still some major developments occurring throughout London and the UK. The London Thames Gateway projects are still underway, The BBC is revamping their major broadcasting house, the new retail outlet Premier Park in Brixton is now almost 95% occupied and JP Morgan has confirmed exclusive plans to move to London’s Canary Wharf in a deal reportedly worth £237 million. That’s not even to mention London’s 2012 Olympics that has already brought hundreds of great opportunities to UK based businesses.

Real estate investors could find themselves once again attracted to London commercial property after the recent announcement by the mayor of London, Boris Johnson, that new funding designed to boost the level of regeneration work in the capital has been released.

The city’s most deprived areas are going to be targeted with the £77 million of funding that is going to be provided over the next three years. Boris Johnson is adamant that London commercial property schemes to improve the most rundown areas of the city must go ahead and states that the funding will play a vital role in making this happen. This combined with the fact that the UK commercial property market is now one of the best value in the world in terms of investment, according to the annual strategy review by global property fund manager La Salle Investment Management, means that London commercial property is likely to start seeing an upside in the next few years, despite the negative impact and effects of the credit crunch so far. The UK has fallen first and hardest across global commercial property markets, which now makes it one of the most attractive areas for investments, especially from Middle East investors. Recent commercial property news has been all doom and gloom so it is great to have some positives on the horizon. UK real estate is starting to generate real interest from overseas investors who see that it has great long-term investment returns potential. The huge downturn for commercial property has meant that there are now some extremely appealing properties available for sale that could be snapped up at absolute bargain prices.

La Salle’s research has shown that direct investment into UK commercial property is around 55% lower for 2008 than the same period in 2007. The UK real estate market is still expected to see further declines and price and rent reductions as a reaction to the current economic climate but by mid 2009 there are likely to be improvements on the horizon, which is great news for London commercial property investors. Like financial services the commercial real estate industry has been extremely hard hit by the current economic climate both in the UK and worldwide so it is great news that there seems to finally be an upside to it all. The UK property sector appears to be remaining reactive and innovative to the current changes which will stand them in good stead for future recovery.