The commercial property market is still struggling due to the difficulties in the economy, according to Jones Lang LaSalle.
Their latest forecast cites returns down at 2%, although office rentals in the West End should perform well. Elsewhere across the country will not experience the same though, with Jones Lang LaSalle expecting rental falls. Continue reading Forecasts Down for Commercial Property
We are witnessing a significant rise in the incidence of some banks refusal to offer new or extended terms to commercial loan facilities. In extreme cases, some banks are demanding early loan redemption. This often leaves the borrower with a major headache in a market where commercial lending is restricted and competitive alternatives are not immediately apparent.
There is no doubt that some banks are ‘shoring up’ their liquidity positions by not lending as broadly as they have done in the past. However, some lenders are very much in the market and the skill is to source those lenders who have an appetite to lend. It is key to present a proposition in a robust manner and, importantly, directing the proposal to the underwriters making the decisions, rather than the local manager who probably has no discretion in these matters. Continue reading Banks not renewing commercial loans
Commercial landlords could find their properties are without insurance in a few months if the Government fails to provide the flood protection insurance companies expect.
The current agreement runs until July, and the Government’s cuts are hitting flood defences. As a result, premiums will increase and some properties are being quoted with insurance of £20,000 a year. Continue reading Flood dispute could make commercial landlords suffer