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Next year looks to be a positive one if research proves correct. As the global market takes stock of the current opportunities for investment, improving worldwide economies mean that the sums available for investment look to be 6% up from early 2013, according to DTZ.
It is anticipated that investment will target commercial property, and specifically in the USA, the UK, China, as well as to a lesser but still significant extent, Japan. The coming year also looks positive for the Asia-Pacific region if current patterns continue.
Part of the reason for the attractiveness of commercial property and the increase of availability of equity for investment is the low bond yield. Investors of capital will remain the usual parties, including third-party fund managers (64%) and publicly limited companies and institutions (15%). Recent and predicted investment appears to be diversified across different kinds of property portfolios with retail seeing a noticeable increase as well as there being an upturn in residential investment. Also looking healthy is the hotel sector, which the research notes has been much more than anticipated in 2013, surpassing US$20 billion.
Also of note was the tendency for much money to remain locally invested by region. While the London commercial property market is seeing ever more Asian and Middle Eastern investment, a trend that is set to continue, much of the money that arises in those regions is invested there as well, and this too will remain the case, particularly given the drives of countries such as Qatar to strengthen their position in the Middle East and the rest of the world.
It would not be unreasonable to assume that in 2014 commercial property values will rise and for the volume of transactions to expand as well. This may even have an impact on the rest of the UK, as opportunities for investment arise as an alternative to the capital.
This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.