Commercial property ''still resilient'' ? commercial mortgages

28 August 2007

Figures in the commercial property industry have said that the sector''s foundations remain strong in the face of confusing market sentiment.

A report in the Financial Times has highlighted the importance of quality when looking at commercial property investments, and suggested that good returns are still available in such cases.

The paper advises that investors should "sit tight" rather than withdraw their interests in the sector completely.

"If you secure good tenants in a limited supply market then there is income plus capital growth still," New Star head of global property told the newspaper.

"People forgot to price in risk for a while in the hysteria of the bull market, and forgot about this need for quality," Mr Webster added.

Earlier this month the British Retail Consortium confirmed that the prime pitch market continued to experience the strongest performance in the sector as a whole, with super-prime markets in London and other major cities likely to provide the best returns for landlords with commercial mortgages.