Some office developments 'are problematic'

Office design news from Morgan Lovell

Published on 12-04-2011

Some commercial office developments that are currently available across the UK are "problematic" for investors, one sector expert has stated.

Andrew Burrell, partner in research at King Sturge, said there are presently many office interior buildings that simply do not offer good returns and therefore, many are not viable for companies to take on over the long term.

He commented: "There will be the distressed sales and there will be interest, but it is probably not the kind of stuff that investors are searching for at the moment."

Mr Burrell added that many investors are now looking at what angles they can see for investment in this difficult sector.

According to a recent report by CB Richard Ellis, March 2011 saw a distinct pick up in performance for all three of the major commercial property sectors in the UK, with total returns of 1.2 per cent and capital value growth of 0.7 per cent at the all property level.

Posted by Adrian Norman