What Will 2017 Mean for the Commercial Property Market?
2016, possibly the most unpredictable 365 days in recent memory, has seemingly thrown us all into a state of uncertainty. Even now, we’re still awaiting clarity on our government’s plan for Brexit (Will it be hard? Soft? Medium-rare?), and the reality of Trump’s inauguration likely won’t sink in until we watch him stand before the crowd ourselves. Both, however, might well affect our commercial property market. NovaLoca looks into the hows, whys, and whos…
Abroad Appeal
Following Brexit, eyes are turning to our friends overseas, many of whom have already made notable investments in the UK market. Swedish billionaire Stefan Persson’s purchase of Oxford Street’s Debenhams branch was the biggest single deal of the year, coming in at £400 million, whilst American bank Wells Fargo snapped up the 11-storey 33 Central building near London Bridge, electing to make it their new UK headquarters.
The weakened sterling has no doubt contributed to this. With property values lowering for overseas investors, prices are becoming more enticing; America has proven our biggest investor, with China, Hong Kong, and Singapore showing no signs of losing interest any time soon.
Rate Expectations
Revaluations, coming into force in April this year, will force business owners to consider their new rateable values. This year’s rates are based comparatively to rents in 2015, which will no doubt mean significant changes for occupiers. The current method of revaluation was introduced in 2010 and was based on rental levels as far back as 2008 – a year that saw us battling against the banking crisis. For more, take a look into gov.uk’s guide.
London Falling
Multiple square feet of London office space is still awaiting development, yet London’s office rental rates have slumped significantly compared to the rest of the UK – including some areas, such as Leeds, who are actually forecasting a huge growth in office space rentals thanks to a far cheaper average rate.
Trumped Up
Donald Trump may well prove an inadvertent boon to our market, purely by virtue of being… well, Donald Trump. Should the controversial property mogul’s ban on Muslims entering America come into effect, increased interest in British property from buyers in oil-rich Qatar and Saudi Arabia is predicted. This could benefit us greatly, or – as Trump might say – ‘bigly’.
Have you forgotten about 2016 already? Check out our overview of our commercial property advice from 2016
Want to see what else 2017 will have in store? Have a look at what 2017 will mean for social media.Save
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very intersting time for the UK. commercial and residential property markets are hanging in the balance as to what the outcome of Brexit shall be.