Commercial property has not done well because of the credit crunch. Lending stalled and the ability to buy property was stopped, and with one swift move prices dropped between July 2007 and June 2009 by 44.2% according to the Investment Property Databank (IPD).
Currently several industry experts think that commercial property prices have bottomed and now is the time to get back into the market. Viewing the IPD index demonstrates this as it has risen in both August and September.
There is more evidence in a chance of sentiment coming from funds managers, now particularly interested in the commercial property market. The more positive outlook is also evidenced by several global strategists.
BDO Stoy Hayward has this week announced, as I mentioned in one of my earlier blog posts, is starting a new property fund, forming an alliance with Coba Asset Management, who will choose and manage the property portfolio. There are still several things to be taken into consideration during the current climate when it comes to property investment. Rent prices are still on a downward spiral, and the current rise in unemployment and poor credit liquidity for businesses will definitely slow the demand for commercial office space. This should be regarded as a long term investment rather than a quick in and out, buying the property well at this moment is key, but remember there isn´t sufficient liquidity in the market yet for anything other than a long term view.