Commercial property 'to hit bottom in 2009'

Office design news from Morgan Lovell

Published on 03-07-2009

Commercial property will hit rock bottom this year before heading on to a recovery in 2010, it has been claimed.

Mike Sales, head of property investments at Henderson Global Investors, said that the UK commercial propery and office interior development market is likely to get as low as it will by the end of the year, before mothballed sites come back online next year or possibly 2011.

He commented: "What you'll see is the space in buildings that can't be stopped coming out and that space being gradually absorbed by the market."

Then a lull in the development pipeline, he explained, will allow for future office interior project opportunities to come to the fore.

Meanwhile, Michael Aglony, marketing manager at Mortgages for Business, recently said that the growing availability of mortgages for commercial property could help reinvigorate the UK office market sooner than anticipated.

He argued that the number of deals currently being marketed for office interior space in London could also lead to a rise in the number of office relocations taking place in the city.