As we approach the end of the year, Simon Morris, the UK property advisor looks back on what’s been a record breaking year for commercial property. In this blogpost Simon looks at some of the news he’s written about over the last year, and some obvious trends soon start to appear.
London becomes the world’s most expensive city
In a year when London become the world’s most expensive city, commercial property investments hit the headlines in a number of ways. Here on the Simon Morris blog, I stayed on top of the news and kept a keen eye on what stories where breaking.
Back in early September I wrote about Canary Wharf Retail Property eclipsing the 1 billion mark, the International Business Times said that the company who currently owns Canary Wharf, Songbird Estates, announced in its semi-annual report that for the first time the collective retail value of the building went past the £1bn ($1.63bn, €1.26bn) mark.
The report suggested that “Canary Wharf Group is now seeing rents strengthen and believes that this will sustain current yields and underpin valuations for the kind of large commercial buildings in its portfolio,”
It went on to argue that “during the period, its retail portfolio passed the £1bn landmark for the first time, and it has also started to see the benefits of the strategic decision to move into residential markets announced in March (2014).”
I also wrote about record growth for commercial property a number of times during 2014. Commercial property was riding high throughout 2014 on the back of the economic recovery that boosted the national property sector as a whole. According to the IDF UK Monthly Property index, commercial property values have risen 12.8% over 16 consecutive months of growth, as at October 2014.
Indeed, towards the end of the year and I wrote a blogpost about central London commercial property reaching a peak of 15bn year to date investment, While investment volume isn’t likely to reach the record £22.4bn of 2013, the tempo and volume of trading in 2014 has been unmatched.
About Simon Morris
Simon Morris is an independent property advisor working with Funds and Investment Companies to ensure property chosen for funds and portfolios delivers agreed return based on low risk.
For more information on property investment vehicles please read the Guide to Property Investment Options.