Commercial property market cool off 'will not last long'

Office design news from Morgan Lovell

Published on 23-07-2010

Any cooling off in the commercial property market in the UK is likely just a result of the tremendous growth that has been seen over the last nine months, it has been claimed.

James Roberts, head of central London research at Knight Frank, said due to the fact that the market has been extremely robust in recent months, there is little call for alarm as it is natural that a brief period of calm would be needed before the office interior market moves forward once more.

He commented: "There were above average levels of take-up in the City between quarter three 2009 and quarter one 2010, so after nine months of above average take-up, you are going to have a pause for breath."

According to figures from CB Richard Ellis, commercial property capital growth slowed to 0.6 per cent in June, taking the year to date increase in property values to 6.8 per cent.

Furthermore, the statistics showed all property total returns for June slowed to 1.1 per cent from 1.2 per cent in the previous month.

Posted by Adrian Norman.