Commercial property investors ''becoming more selective'' - commercial mortgages

28 June 2007

Commercial property investors are becoming more selective in expanding their portfolios as they look to maximise potential revenue, it has been advised.

Property advisor Savills has said that the days of investors simply buying any property and then waiting for returns on investment to come in automatically are now over.

Landlords with commercial mortgages are nonetheless still keen to invest should the right property come along, the firm suggested.

"There are still some very hot markets out there. London offices, for example; there is no sign of prices really ceasing to rise or indeed investor interest. There is still a lot of interest," noted Savills head of commercial research Matt Oakley.

"I think investors are very much focusing more on properties that have a strong prospect for upward rental growth for the future," Mr Oakley added.