Commercial property ‘will provide bargains in 2010’

Posted 26/02/2010

The commercial property market will provide investors with plenty of opportunities in 2010, one expert has predicted.

David Pearl from Pearl and Coutts told Property Mentor that there will be chances for people to snap up bargains, as well as benefits from good yields providing excellent returns.

He recommended Soho and the West End as good places to buy office space, with rental yields there coming in at £65 to £68 per square foot.

Mr Pearl also suggested that commercial property investors look to buy up ex-local authority stock, which could be sold off at good prices this year.

The residential property sector is a good place to look as an indicator for forthcoming commercial property trends, the expert said.

City office project developer Minerva recently predicted that Britain could have “passed the cyclical low in the commercial property market”, with businesses looking to expand and a shortage of quality office space driving demand.