Property economist advises investing in commercial property

Mon, 11 Oct 2010 | COMMERCIAL PROPERTY

Capital Economics’ chief property economist has announced that commercial property is looking like a solid investment compared to bonds and residential property.

Ed Stansfield says that 'relatively benign conditions for the UK commercial property market' have been created thanks to the Bank of England holding the base rate low and a ‘sluggish’ UK economic recovery.

“The spread between interest rates and the Investment Property Databank All Property Yields Index is close to its 10 year high, which means that commercial real estate has the ability to generate income today with potentially high returns on capital investment,” he said.

Following a 44 per cent fall in UK commercial real estate values from 2007 to 2009, a healthy 24 per cent rise has been noted since last year, signalling a strong comeback for the sector.

James Burchell, chief executive at Faircroft Real Estate, says, “UK Property yields have outperformed both the UK All Share index as well as Gilts over the past 3, 5 and 10 years – the commercial property sector looks too attractive when compared to equities, gilts and bonds.”

A recent survey from the Royal Institution of Chartered Surveyors (RICS) also revealed a greater demand for commercial property space.


Share this article



Latest Businesses for Sale

Joinery Business
Bethnal Green, London, UK

This business specialises in offering professional, bespoke joinery solutions to its customers at competitive prices. It is capable of offering products such as: box sash windows, exterior/interior doors, shop fronts, fitted kitchens, staircases and...

Asking Price: £125,000
Turnover: £329,798

LEASEHOLD


Civil Engineering & Vegetation Management
East Midlands, UK

Mainly operating in the rail sector, services cover vegetation clearance and brickwork repairs to rail structures, such as bridges and tunnels. Works with approx. 20 active clients, circa 80% of whom provide reliable, repeat business. Offers invited.

Asking Price: Offers Invited
Turnover: £936,594

LEASEHOLD


Online & Retail Florist Business
Oldham, Manchester, North West, UK

Established in 1978. Excellent reputation. High profit margins. Mix of corporate and general public customers. Further growth potential. Seen large growth in online. Offers invited.

Asking Price: £70,000
Turnover: £327,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
10
 
Aug
 

Adelie Foods’ Urban Eat brand acquired by Samworth Brothers | BUSINESS SALE

Samworth Brothers has completed the £6.4 million acqui...

 
07
 
Aug
 

Wrexham-based wire firm falls into administration | ADMINISTRATION

Wire manufacturer Wrexham Wire has fallen into administratio...

 
06
 
Aug
 

Leading UK tour operator Ski Weekends enters administration | ADMINISTRATION

One of the UK’s leading ski tour operators Harris Holi...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
10
 
Aug
 

Adelie Foods’ Urban Eat brand acquired by Samworth Brothers | BUSINESS SALE

Samworth Brothers has completed the £6.4 million acqui...

 
07
 
Aug
 

Wrexham-based wire firm falls into administration | ADMINISTRATION

Wire manufacturer Wrexham Wire has fallen into administratio...

 
06
 
Aug
 

Leading UK tour operator Ski Weekends enters administration | ADMINISTRATION

One of the UK’s leading ski tour operators Harris Holi...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources