Commercial Property Crash

A very good article – well worth reading is available here.

The figures for the commercial market really are frightening. We picked up this snippet which puts things into context

Commercial property values are down a staggering 28% from their June 2007 peak, says the Investment Property Databank. The fall has come as over-extended investors have been forced to dump their holdings due to the rising price of bank loans.

And if you need any more confirmation of how grim things have been for the big ‘quoted’ property companies now known as REITs (Real Estate Investment Trusts), British Land provided it yesterday.

London’s largest office landlord, the owner of a string of high profile sites such as Broadgate in the City, as well as the Glasgow Fort shopping park, has had to slash its net asset value (NAV) per share by a massive 38% over the last year.

Plus remember – all empty buildings now attract FULL business rates – looks like investing in a demolition company might be sensible!

Originally posted 2008-11-21 09:16:32.