In the wake of the war in Ukraine and the cost of living crisis, a member of Bridge Help’s valuer panel has given his view on the commercial property market, saying: ‘Cash will be king with commercial property in the short run.”
Keen to understand what the current market conditions mean for commercial property investors, we asked Andrew Seale, a Senior Surveyor at chartered surveyors and property consultants Barnsdales, which is a member of Bridge Help’s property valuer panel, for his view.
He said: “The cost of living crisis may affect consumer confidence with interest rate hikes and upward inflationary pressures resulting in cautious behaviours in business.”
“Inevitably, this will translate into weaker demand in the commercial and residential property markets with likely falls in value. This will have a downwards impact on valuations.
“Hopefully, any potential downturn will be short lived but, clearly, both commercial and residential property looks expensive at the moment, driven by post-Pandemic recovery but then spooked by the Ukraine war.”
“Despite the downturn and industry cautiousness, Andrew added that “markets in industrials remain good, offices are stable.”
Offices in particular, could be an opportunity for commercial investors.
Government’s work from home advice was lifted on Thursday 27 January in England after being in place for nearly two years. According to a 2021 survey by CIPD, the professional body for HR and people development, 63% of employers planned to introduce or expand the use of hybrid working. However, the rise in energy costs is forcing people back into the office. This has led to a ‘flight to prime’ for office space.
Companies are now looking for flexible, modern large floor plate working space which is easily adaptable to a hybrid home/office working model.
The hybrid model could also see opportunities emerge for high street property investment with home workers seeking hotels, cafes and bars as an alternative to co-working spaces and offices.
Chris Sellars, Chief Executive of Bridge Help commented: “Given the current worldwide and national pressures on the economy right now, it’s important that all property investors stay up-to-date and informed of market trends.
“Accurate valuations are key to our success. Clearly, while markets are unstable we do not want borrowers to over stretch themselves and default on loans which is why Bridge Help works with reputable and trusted valuers like Andrew Seale from Barnsdales.
“Having our panel of independent valuers spread throughout England and Wales enables us to stay informed of both regional and national economic trends so we can facilitate the best deals for borrowers.”
Bridge Help lends up to 75% of the open market value (OMV) of a property for commercial, semi-commercial and residential (Buy-to-Let) properties as well as land with planning. The company also offers refinance for loans with existing lenders. Using accurate valuations, coupled with its own complete inhouse solution, which includes specialist property solicitors, means Bridge Help can act swiftly and decisively to enable borrowers to take advantage of opportunities.
To find out more about the best bridging loan solutions for your commercial property requirements, please get in touch with our friendly team today on +44 (0) 33 3303 4681 or via email@example.com.