Leisure, retail and property sectors 'to expand' commercial property

19 November 2009

Written by Jeni Browne

Some 12 per cent of firms increased their occupied space during the same six-month period and the survey suggested that the leisure, property and retail sectors might be among the most likely to take out a commercial mortgage to expand their holdings.

But access to credit - including commercial mortgages - is one of the reasons some firms have reduced their property holdings during the past six months, according to figures from the Confederation of British Industry (CBI) and GVA Grimley.

The survey, carried out between August 26th and September 16th, indicated that 25 per cent of firms reduced their occupied space in the last half-year. A similar rate of decline is expected in the coming six months, researchers suggested.

Recently, British Land chairman Chris Gibson-Smith stated that the property owner saw a 1.4 per cent rise in the value of its portfolio during the second three months of 2009. He asserted that future commercial mortgage holders - including professional investors and operators - may find an improved property market in the coming years.