Office interior space 'still feeling effects of recession'

Office design news from Morgan Lovell

Published on 22-12-2009

Commercial property developments across the UK are still feeling the effects of the recession, it has been argued.

Ian Fletcher, director of policy for real estate at the British Property Federation, said modern office design space stocks face the possibility of repossession next year as some owners are finding it difficult to service their debts.

As a result, this may put a pressure on values, causing a reduction in property rates and making banks more likely to foreclose.

He commented: "The commercial property sector was late at going into the recession but later coming out of it. The nature of the sector means that it tends to feel the after effects of the recession."

According to a recent survey published by Jones Lang LaSalle, refinancing will dominate in the short term for those in the commercial property sector.

Respondents indicated that an average of 49 per cent of lending activity will be focussed on refinancing over 2009. This will fall to an average of 27 per cent by 2011.

Posted by Ian Johnson.