Is now the time to buy commercial property?
We have been really encouraged to read reports that we may be close to hitting the bottom of the market. The Guardian reported this week that Blackstone was close to a massive deal with British Land and also that there were signs of private equity funds committing to commercial property acquisitions once again.
The British Land deal, about which there has been much speculation, involves the office complex at Broadgate in the City of London, regarded by some as the crown jewel in its office portfolio. Reports suggest it is about to sell a half-share in Broadgate to the giant US private equity firm Blackstone. British Land has also put together £3bn of funding as it seeks to take advantage of depressed prices over the next couple of years, The Guardian reports. And where Blackstone goes, other private equity buyers are likely to follow, suggesting that a pick-up in market activity may be around the corner.
We are going to keep an eye on the leads coming in through NovaLoca to see if they are increasing. Despite all the difficulties in the commercial property market over the past two years, we have seen a fairly consistent flow of leads each month, but we understand that, looking overall at leads of all sources, conversions are down. Now perhaps the tide is due to turn, or at least an improvement in deal flow may not be far off.
Tell us what you think over the coming months – are more of the great leads sent through by NovaLoca starting to turn into deals?
And for those of you looking for space but hanging on for the best deal – maybe now is the time to act. We all want assurance that we are buying at the right time, but if really big players are starting to invest, perhaps the waiting is over and now is the time to look for deals.
For further information on the reports about Blackstone and British Land, click here
