Commercial Property News
Prospects for Commercial property in 2008
There is no doubt that the 'credit crunch' will have a continuing effect in 2008 - making the freehold commercial property market 'sticky' for the foreseeable future as finance remains tight, not just in the UK, says Cheffins' Philip Woolner.
There is no doubt that the ‘credit crunch’ will have a continuing effect in 2008 – making the freehold commercial property market ‘sticky’ for the foreseeable future as finance remains tight, not just in the UK, says Cheffins’ Philip Woolner.
Although there are interesting signs that a number of financial institutions are planning ‘vulture’ funds to swoop onto any fire sales that take place by property companies or investment funds.
His main prediction is that occupier demand will probably remain robust and that with the growing shortage of Grade A quality offices there will be the likelihood of a significant upward effect on rental levels in and around Cambridge. In general terms during 2007 office demand was steady and similar to 2006, with around 350,000 sq ft let or sold and even if demand remains at similar levels in 2008, the amount of available space will be less.
A major factor in all this is the shortage of supply of serviced development land across the Cambridge region, with continuing strong demand from both occupiers and developers to acquire such opportunities.
What this ensures is that commercial property in the Cambridge region will remain a valuable asset as the long term economic future for the region is assured.