Commercial mortgage and property market assessed

18 August 2009

Written by Jeni Browne

An expert on commercial real estate has offered an assessment of the current market.

Michael Rhydderch, a partner at real estate adviser company Cushman & Wakefield, has suggested that less stand-out properties tend to be the assets which perform worse in economic downturns.

"In general they are not prime assets; they tend to be secondary or tertiary assets and they tend to be hit before, or to a larger extent, than the prime assets in the downturns," he explained.

Mr Rhydderch also said that prices of this type of property need to drop some way before they attract bids, which is information that commercial mortgage holders may need to bear in mind before selling up.

Earlier this week, the Royal Institution of Chartered Surveyors indicated that more than 75 per cent of respondents to one of its surveys reported how more distressed commercial properties appeared on the global market in the second quarter of 2009, compared to the first three months the year.

However, CB Richard Ellis recently suggested that the commercial property sector turned a corner for the better in June.

Find out more on our commercial mortgages and how we can help you achieve your aims - enquire online.