Demand boosts London commercial property - commercial mortgages

18 April 2007

London''s commercial property market is being boosted by demand for tailored properties as businesses continue to set their sights on premises in the capital, according to one expert from the British Property Federation.

Ian Fletcher argues that speculative investment in London commercial property is less common than demand for tailored property. This suggests that businesses looking to take out commercial mortgages in the capital are wanting specific needs met before committing to a property.

"The vast majority of space that is developed is used for pre-order rather than speculative," remarks Mr Fletcher, highlighting the Gherkin as an example of speculative investment.

The iconic London building recently sold for £600 million, indicating that the speculative market is far from moribund.

In addition HSBC recently announced plans to sell its Canary Wharf headquarters for £1 billion, in a move that generated a healthy level of interest from potential buyers.