Property Investment Advice
The low level of tenant demand for commercial property space continues to apply downward pressure to rents. Those properties with upward only rent review clauses can maintain their current rental level on rent review, but landlords with both upward and up or down rent reviews are facing increasing pressure to accede to the tenants paying lower rents, merely to have them remain in occupation rather than go into liquidation or receivership. Landlords are acutely conscious of the costs of holding property vacant, with security, rates and utility bills suddenly falling on the landlord.
The restrictions on bank borrowing continue to adversely impact upon potential purchasers. The overall impact on these pressures on the smaller end of the property investment market has been to restrict activity with investors holding on to current holdings rather than facing crystallising losses and not to seek further investments until conditions improve.
At the prime end of the market, traditionally the territory of the insurance company and pension fund investors the return of some insurance companies to seek investments which are perceived to have potential performance to compete with the stock market has produced a limited increase in market activity. Property companies, feeling the pressure of borrowing covenants, have been forced to seek buyers but in what is essentially a buyer’s market where historic valuations and vendor aspirations tend not to match purchasers views of value.
The forecast remains pessimistic until some sustained signs of recovery from the current depression are revealed.
Shaw and Company works in association with Robert Head, the leading Chartered Valuation Surveyor who, for over forty years, has practiced as a commercial and industrial property and investment consultant advising major clients in the insurance, corporate and private sectors.
Robert’s broad background and experience extends around the UK including the West Midlands and Wales as well as London where, with Richard Ellis, he and the team he lead valued properties ranging from offices, factories and film studios, to hospitals. From there he formed the London office of a major Welsh-based practice where he developed the business to serve Welsh clients seeking professional advice outside of the Principality.
Today, Robert works on his own account and with Shaw and Company, and included among his clients is a major insurance company and their associated pension funds, as well as many more corporate and private clients. He consults on major projects including multi-storey office buildings, industrial estates and shopping schemes as well as much more modest commercial premises throughout England and Wales. The availability to our clients of this level of specialist experience is invaluable.