Valnoveglia

By: Matt Grimes PC
UK commercial property returns in 2008 are set to be the worst recorded for eighteen years and RICS has warned that commercial property values could still fall by a further 25% over 2009 and 2010. For tenants looking for commercial properties to lease this isn't all doom and gloom as it is resulting in commercial real estate landlords offering increased inducements, incentives and sharp drops in their rents.

The credit crunch has hit the financial services and properties industries the hardest. Canary Wharf is currently one of the most exposed areas in the UK and facing the threat of increasingly empty buildings. As the financial district of London it has been hit hard by the credit crunch and potential tenants have found that there are now many bargain lets to be had.

Despite the negative effects on the financial and properties sectors some industries are in fact seeing and upturn as a result of the credit crunch and are actually seeking out more commercial property. Certain sectors are now actually in their element as a result of Britain’s tightening purse strings. Cash convertors, the Australian founded company that provides pawn broking and other cash raising services has experienced a significant growth in profits compared to previous years which corresponds with the overall decline in the economy and has actually opened a higher than average amount of new stores this year. Their customer base has widened in variety too with it now not being uncommon for city businessmen to visit the store because they need a short-term, quick cash injection.

Other industries experiencing upturns are bailiffs, tax advisers, takeaway providers and any kind of budget provider such as budget hotelier Travelodge or budget supermarket chains Lidl and Aldi. As a result of redundancies and investment downturns some people are having to make huge cutbacks however, the majority are looking for smart ways to save money that don't affect their current lifestyle too much. For example, having a takeaway or going to a cheaper restaurant rather than fine dining; shopping at a cheaper supermarket and using cheaper hotels for business travel. Companies seeing an upturn despite or in fact because of the credit crunch are in a highly enviable position. Not only are they seeing increased profits but they are also making plans for expansion when the rest of the UK is sitting tight or planning cut backs. Their expansion plans will benefit even further from the credit crunch due to the fact there are now a lot of cut price commercial properties available to these businesses that previously may have been inaccessible.

Matt Grimes is a commercial property agent in London and has considerable experience in the industry after working in the commercial property sector for over twenty years. He has written numerous articles regarding the commercial property area and is seen as an authoritative figure in the industry