European commercial property prices grew by a record 7.8 per cent in the fourth quarter of last year, fuelled by the ongoing recovery in the UK’s regional property markets.Figures out yesterday by property adviser DTZ show that prices rose by 20 per cent for the year overall thanks to a record last quarter, when investors splurged €65bn (£47.4bn) on European commercial property.The strongest growth was in the UK regions, which increased by 35 per cent compared to a year ago.Nigel Almond, the head of Capital Markets Research said: “Prices outside of London in the UK only began to show clear signs of recovery at the beginning of 2014, having fallen by close to 50 per cent from their peak in 2007. As a result prices are still 25 per cent below their peak and back at 2004 levels.”Central London also performed strongly, up 23 per cent year-on-year. However, Almond said the rate of growth was beginning to cool. Prices in London rose by just five per cent in the fourth quarter compared with eight per cent in the third quarter.“The cooling comes as no surprise as prices in London are now 20 per cent above their previous peak in 2007,” Almond added.
But political risks are rising – whether the Conservative Party or Labour win next May.
If we take the temperature of investors in commercial property right now, we would find warm support for the sector in the UK. In a low interest rate environment, and with returns from property far outstripping bond yields, commercial real estate has returned to favour. The UK commercial property market has performed strongly in 2014, with the sector returning 14 per cent during the first nine months of this year, according to the IPD UK Monthly Property Index. Capital values have also recovered by 28 per cent from their trough, although they are still 29 per cent below their excitable 2007 peak. But will this upward trajectory for commercial property continue in 2015, and does the sector offer good prospects for investors?
Money is flooding into global real estate with new capital targeting the commercial sector reaching a record $429bn (£287bn) in 2015, according to a DTZ report.
By the time he was in his early 60s, the self-made businessman had developed a number of lucrative commercial real-estate properties. His extensive holdings included several single-tenant buildings, gas stations and strip malls, as well as multiple residential spaces.
What if, instead of crouching over your desk in an open office, you could kick back in a cocoon-like space where no one could sneak up behind you and start talking? At the very least, you'd probably be more productive.
In a competitive, sales-driven work environment like a real estate office, how do you unite your employees? How do create a cohesive — not cutthroat — culture?
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