Commercial mortgage seekers affected by market upturn?

07 September 2010

Business mortgage seekers have been advised the commercial property market is beginning to see signs of a recovery.

Writing for the Independent, Simon Read said experts have been buoyed by a "year of positive returns" and are steadily returning to the sector.

"Return-hungry investors have spotted the growth and moved back into commercial property funds after a mass exit in 2008 and 2009," he explained.

Citing recent statistics from the Independent's Property Databank, Mr Read noted there has been 12 months of continued growth in yields for retail, office and commercial buildings.

However, caution is still advised when looking to place money in the industry, he added, as there is a possibility of a boom and bust cycle prompted by over-investment.

Liz Peace, chief executive of the British Property Federation, recently said people hoping to lease office blocks for long periods of time are likely to get some great deals as many firms are keen to keep their tenancies short term.

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