Not All Doom and Gloom for London Commercial Property
The credit crunch has fully set in and experts have stated that we are on our way to a full blown recession. Real estate is at an all time low and London commercial property leasing and sales figures are at some of the lowest levels ever recorded. The London commercial property market has become a tenants market with buyer power increasing tenfold. In order to counteract the downturn in lettings landlords have reduced their rents, are offering better leasing terms and agreements and have provided high incentive inducements in order to see their London commercial property filled and not laying dormant.
Companies that have remained successful despite the current economic climate are finding themselves able to afford buildings and London commercial property lets that in the past would never have been available to them. Discount retailers are reporting unprecedented growth during these purse pinching times and budget hotelier Travelodge and cheap food retailer Aldi are prime examples with plans for a major nationwide expansion program in 2009 which will see the two businesses joining together to provide joint budget hotel and grocery outlets throughout the UK. Several SME businesses are also taking advantage of the lower rents and finding they are able to afford London commercial property that was previously inaccessible to them.
Although reports show retail sales figures are down year on year our retailers are still hanging on in there especially in our nation's capital. The west end may be seeing fewer shoppers than a year ago but it is still outstripping the nation in terms of sales figures. London did experience a 0.08% year on year drop of shoppers visiting its stores in October but when you compare that to a national drop of 6.6% on the high street things suddenly aren't looking so bad. Regardless of the impact of the recession London's west end has outperformed the rest of the UK for the last three years.
Despite the gloomy news reports there are still some major developments occurring throughout London and the UK. The London Thames Gateway projects are still underway, The BBC is revamping their major broadcasting house, the new retail outlet Premier Park in Brixton is now almost 95% occupied and JP Morgan has confirmed exclusive plans to move to London's Canary Wharf in a deal reportedly worth £237 million. That's not even to mention London's 2012 Olympics that has already brought hundreds of great opportunities to UK based businesses.
