Jones Lang LaSalle: Distressed London commercial property will be sold in 2012

29 December 2011

Written by Simon Whittaker

Distressed commercial real estate in London could be a particularly popular purchase in 2012.

This is according to Jones Lang LaSalle's head of forecasting Andrew Burrell, who explained this is because banks and other institutions are "running the show in terms of these disposals".

People may take out commercial mortgages to buy these assets because they are "in the shop window", he added.

Mr Burrell predicted the corporations disposing of distressed property will focus on those that are "easiest to sell", as this will make it simpler for them to receive their money back.

Therefore, buildings in larger markets that have made a stronger recovery, such as in the capital, will be particularly popular among sellers, the expert forecast.

Places outside of this region have problems "in terms of what is going on in the public sector and the generally weaker economy", which has lessened the likelihood of distressed properties being disposed of in these areas, he explained.

Throughout the UK, the average value of commercial property will fall during the next 12 months, a survey of six executives, analysts and economists conducted by Bloomberg News indicated.