Bottom of commercial property market ''to be in 2009'' - commercial mortgages

22 July 2008

The commercial property market is likely to reach its floor in early 2009, it has been suggested.

In news that may interest those with commercial mortgages, the head of the British Council of Offices'' research centre Mat Oakley commented that "we are not far off" the bottom of the market and suggested the drift downwards was because there are many able buyers of commercial property who are waiting for the right time to buy.

While buying at the bottom of the market is the best time, this period can only be established retrospectively, he noted.

However, Mr Oakley said, the current situation is also the result of most property owners being in a strong enough financial situation to deal with the economic downturn, stating: "There is no significant distress amongst property owners at the moment so they are not being forced to sell."

New commercial office developments are still taking place, however, with one of the latest to be completed occurring in Huddersfield.

Folly Hall Mills, a 19th century mill in the West Yorkshire Town, has been transformed into 60,000 sq ft of office space, Property Executive reports.