How much have commercial propert prices fallen?
Discussion
mrsxllifts said:
Down the south of England, commercial property prices haven't dropped at all to buy or rent. It seems landlord would rather their properties sit empty rather than drop rents.
Yep, Infact the landlords on one of our propertys just tried to up our rent after only three years by 15% even though we had paid 10% over asking to secure as "well your paying less PSF than the surround propertys sir"
Naturally they were told to get f
ked and we agreed on a nominal 3% raise.Cheecky feckers, For some there has been no recession.
Take professional advice from someone who knows the market. It never fails to amaze me that people appoint accountants to do their finances, appoint lawyers to do the legals but then decide to do property issues themselves.
Many surveyors will work on an incentivised fee basis and therefore the greater the saving they make you the more they get paid. Good for you good for them!
Many reduced rentals are currently reflected in rent free period etc. There some incredible rent free periods being offered. Someone I know has taken a 6 year lease, they have an initial 9 month rent free, theres a break clause at end of yr 3, if they dont exercise it they get another 9 months rent free. So they are only paying rent for 4 1/2 years out of the 6 which according to my maths is a 25% discount on the rent, and the rent isn't high either!
Landlords will always attempt to push rents up on review, irrespective of the market as they know the existing tenant is unlikely to want to go to the expense of moving. So ensure any lease you take is protected by the Landlord and Tenant Act 1954 and you'll then no as long as you follow the correct legal procedure you are protected. Try to ensure that if rent reviews are going to 3rd party its with an independent expert and you're even better off.
But most of all get professional advice, you can then concentrate on running the business, making money, whilst allowing experts to do the job they are paid to do.
Many surveyors will work on an incentivised fee basis and therefore the greater the saving they make you the more they get paid. Good for you good for them!
Many reduced rentals are currently reflected in rent free period etc. There some incredible rent free periods being offered. Someone I know has taken a 6 year lease, they have an initial 9 month rent free, theres a break clause at end of yr 3, if they dont exercise it they get another 9 months rent free. So they are only paying rent for 4 1/2 years out of the 6 which according to my maths is a 25% discount on the rent, and the rent isn't high either!
Landlords will always attempt to push rents up on review, irrespective of the market as they know the existing tenant is unlikely to want to go to the expense of moving. So ensure any lease you take is protected by the Landlord and Tenant Act 1954 and you'll then no as long as you follow the correct legal procedure you are protected. Try to ensure that if rent reviews are going to 3rd party its with an independent expert and you're even better off.
But most of all get professional advice, you can then concentrate on running the business, making money, whilst allowing experts to do the job they are paid to do.
Off the top of my head IPD had the UK Average top to bottom fall as 44%. This obviously relates to all commercial property throughout the whole of the UK. Prime Investments have since recovered but the rest of the market is still bouncing along the bottom.
In the North West, many new build freehold offices that were seling at the peak (Sep 07) for say £175psf were sold during the recession for £80-£90psf in forced sale situations. It's now starting to pick-up again with genuine buyers returning and prices of £120psf are not unrealistic. Obviously these figures are very broad and cannot relate directly to your property.
As stated above, you really should get professional representation. Developers, vendors and vendors agents really do rub their hands together when purchasers do deals themselves. A surveyor should save you several times their fee over what you could negotiate yourself.
In the North West, many new build freehold offices that were seling at the peak (Sep 07) for say £175psf were sold during the recession for £80-£90psf in forced sale situations. It's now starting to pick-up again with genuine buyers returning and prices of £120psf are not unrealistic. Obviously these figures are very broad and cannot relate directly to your property.
As stated above, you really should get professional representation. Developers, vendors and vendors agents really do rub their hands together when purchasers do deals themselves. A surveyor should save you several times their fee over what you could negotiate yourself.
Turbo cab said:
mrsxllifts said:
Down the south of England, commercial property prices haven't dropped at all to buy or rent. It seems landlord would rather their properties sit empty rather than drop rents.
Yep, Infact the landlords on one of our propertys just tried to up our rent after only three years by 15% even though we had paid 10% over asking to secure as "well your paying less PSF than the surround propertys sir"
Naturally they were told to get f
ked and we agreed on a nominal 3% raise.Cheecky feckers, For some there has been no recession.
Turbo cab said:
mrsxllifts said:
Down the south of England, commercial property prices haven't dropped at all to buy or rent. It seems landlord would rather their properties sit empty rather than drop rents.
Yep, Infact the landlords on one of our propertys just tried to up our rent after only three years by 15% even though we had paid 10% over asking to secure as "well your paying less PSF than the surround propertys sir"
Naturally they were told to get f
ked and we agreed on a nominal 3% raise.Cheecky feckers, For some there has been no recession.
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