As a London-based independent property specialist who acts in an advisory capacity to UK property investment funds, Simon Morris keeps a keen eye on commercial property news and reports from around the UK; today he welcomes more positive news, this time from outside the capital.
Birmingham in the West Midlands is one of the UK cities outside of London, that’s starting to show positive growth in its commercial property sector. Retail rents are up 4% to £285 per sq ft, this positions Birmingham as the best performing centre in the West Midlands.
Double the UK average
While commercial property rents are rapidly increasing in the South, it looks likely that the rest of the UK is now starting to catch up. Stable rents are also on the rise, with reports saying that they’re up 10% on last year in Birmingham.
The main driving force behind this improvement is increased confidence and improving performance in the retail sector. In Birmingham, improvements in performance of retail centres, are double the UK average.
Best performance since 2008
This news is another in a series of reports, showing that commercial property is enjoying its best performance in the market since 2008. The credit crunch that so depressed consumer confidence and restricted spending in retail centres, looks to be ending, this can only be good news for those who have commercial property within their investment portfolio.
Commercial property was hit hard by the down turn, but all the signs are now encouraging for investors; the outlook for capital growth is also a big attraction at present.
Simon Morris comments
The news from Birmingham is certainly encouraging for those investors looking for the healthy yield that a commercial property investment offers. Simon Morris believes that you should always measure the element of risk in your portfolio, but increasing confidence in property investment seems to have returned for the foreseeable future.