Turning point for commercial property mortgage market?

23 October 2009

Written by Steve Olejnik

Jones Lang LaSalle's latest report could mark the turning point for the commercial property sector, according to the British Property Federation's (BPF) director of policy Ian Fletcher.

The fortunes of investors with business mortgages may be more positive in the coming months, it would seem.

Data reported by Jones Lang LaSalle indicates that all-property total returns posted positive figures in the third quarter of 2009.

With a rise of 4.5 per cent, it was the first positive result since the second three-month period of 2007, as well being the highest return for over three years.

Mr Fletcher was cautious in his assessment of current market conditions.

"Obviously any good news is welcome, but I wouldn't say that we are suddenly going to see the industry rebounding quickly from the traumas it has faced over the last year or two years," he explained.

The BPF director of policy also suggested that the Jones Lang LaSalle report is accurate in its prediction that rents will only start to accelerate in four years' time.

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