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2020 will be ‘year of opportunity’ for north’s commercial property market

THE north’s commercial property market ended the year with a much needed boost with the sales of Sprucefield retail park in Lisburn by Intu and Crescent Link Retail in Derry by the Lotus Group.

The combined value of these deals, at £70 million, brought the total value of commercial property investments in Northern Ireland for 2019 to just over £210m.

Property investment at this level is a considerable improvement on levels seen in 2018 at £165m, though there is a long way to go to reach the five-year average at just over £300m a year.

The subdued level of investment in 2019 is not surprising given the uncertainty around Brexit over the last few years, and we would expect investment levels to bounce back strongly this year given the strong mandate the Conservative Party received in the recent general election and the relatively stable macro-economic outlook

The office sector again performed strongly in 2019 with take up of 517,000 sq ft, well ahead of the five year average. Significant deals throughout the year included the signing of leases by Deloitte for 80,000 sq ft in the Ewart Building on Bedford Street, PwC taking the remaining 46,000 sq ft in Merchant Square and the letting by Kilmona of the entirety of Chichester House on Chichester Street to Rapid 7.

The outlook for 2020 for the office sector also looks strong with stated requirements in the market in excess of 400,000 sq ft including the NI Civil Service Requirement for 161,500 sq ft and the as yet unsatisfied Citi requirement for 120,000 sq ft.

Available prime office stock is as usual fairly limited though buildings including The Sixth, Paper Exchange and The Mercantile all in prime locations could be brought on stream this year subject to suitable pre lets.

Trends in the office occupier market are set to continue with co working/serviced office providers predicted to continue their significant expansion throughout the UK.

Technology is as ever set to change the way we work though it is unlikely to affect the demand for office space in the short to medium term as office workers need to interact with each other in an easily accessible work enhancing environment.

The continuing challenges in the retail market will create opportunities both for successful retailers to relocate to better position and for investors who are prepared to look at the sector. There will be undoubtedly be a need for alternative uses for retail space in both suburban shopping centres and retail parks but also in our towns and cities given that the prime retail areas are becoming smaller.

In order for our bricks and mortar retailers to successfully continue to compete with the steady advance of the internet, our government will have to look at the level of rates charged to retailers and work out a way to balance the playing field with their internet competitors. though where this sits on the level of government priorities remains to be seen.

On balance, the outlook for 2020 is a positive one and we look forward to the challenges that the year ahead will bring.

By Declan Flynn

Source: Irish News

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Why You Should Use A Commercial Finance Broker – The Benefits Of Working With A Mortgage Broker

Working with a commercial finance broker has many benefits other than the ones that are obvious. Here’s why and how it can save you a great deal of time, money and hassle.

The commercial finance sector has long been a mystery to most businesses that have wanted to borrow money from time to time. The days of simply walking into your local bank and finalising a handshake deal with the manager are long gone. Banks – despite their best efforts – are hardly able anymore to cater to the huge capital demands that UK businesses have.

Naturally, private lenders have managed to fill this gap in supply. But that has also spelt trouble for the borrowers in terms of predatory lending and other ills. Moreover, many borrowing businesses don’t have at their disposal the necessary experience to understand all the aspects involved in a commercial loan. This is where commercial finance brokers come into play.

There are many reasons why you should use the services of an experienced, responsible and licenced broker.

Before We Start – What Is A Mortgage Broker (Or Finance Broker)?

Many people – especially those who haven’t borrowed before – have a flawed understanding what finance brokers really do.

In the simplest of words, a finance broker or a mortgage broker is a professional entity (an individual or a firm) licenced to offer expert finance advice and match your loan requirements with suitable offers from lenders.

Brokers operate in almost every lending sphere – from small-scale personal finance to large-scale commercial finance. Commercial finance brokers (like Commercial Finance Network) specialise in helping businesses find just the right kind of finance deal.

While the finer aspects of why you should use the services of a broker will be discussed below, it should suffice for now to say that an experienced broker can help your business through tricky situations of cash and/or credit crunch.

Why Approaching A Lender Directly May Not Always Work

Getting a business loan used to be a straightforward affair not too long ago. Just contact the local bank branch or high street lender, let them know of your requirements and accept one of their ready-made finance products – easy as you like.

The simplicity in this structure, however, came at your expense. Getting into a retail finance deal is almost always a bad idea for a business because it’s not only more expensive, it fails to bring to your notice all the possible options you can choose from.

In addition, approaching lenders directly is a tedious and time-consuming process, regardless of how straightforward it may seem to be. If a lender turns your application down, you have to repeat the whole process again, leading to multiple soft and hard credit checks that leave their footprints all over your credit report.

Here’s why using an experienced broker gives your loan application an edge.

1. Brokers Make Borrowing Easier, Faster And Safer

Approaching a lender directly for a commercial loan may not always be the best idea, as we just discussed. It can not only drain your resources quickly; it also almost always leads to you getting a rather unfair deal.

Commercial finance brokers help you avoid this scenario by making the entire borrowing process smoother, faster and safer. Commercial Finance Network, for example, is among the handful of brokers out there who have an impeccable track record of turning around loan applications within 24 hours.

Moreover, all licenced brokers are obligated to treat your personal details with utmost care. When you use a broker’s services, you’re still in charge of your application, at all times. 

2. You Get To Choose From Offers You Would Otherwise Have Never Seen

This is probably the most important benefit of using commercial finance broker services.

When you approach a lender directly, they can only produce quotes that are drawn from the products they already offer. There is no room for customisation, and you will often have to make do with incompatible loan products just to save the day.

For example, if you’re applying for asset finance and the lender only offers lump-sum business loans, you will be left with an offer that makes no sense in terms of your requirements.

Working with a broker eliminates this problem altogether. Many lenders work exclusively with brokers and offer broker-only finance products that wouldn’t be accessible to you if you were to approach them on your own.

You can go a step ahead and work with a whole of market commercial finance broker like Commercial Finance Network to make sure that you receive offers from UK-wide lenders.

3. Brokers Can Save You Money

If you’re worried about broker fees and charges, you shouldn’t be.

Brokers who work with specialist lenders are often able to produce quotes that are much cheaper than their retail counterparts. Eventually, the money you save in the form of lower interest rates and faster disbursals outweighs any broker fees you would be required to pay.

An FCA-regulated and responsible broker like Commercial Finance Network will never charge you hidden fees. You will know exactly how much you’ll be paying before you get into a deal.

4. You Can Access Specialist Lenders

Specialist lenders are typically small to medium sized lenders who only offer highly specialised finance products like invoice finance, development finance and HMO loans.

Since it saves them a great deal of hassle, many such specialist lenders prefer to work exclusively with brokers. In essence, using a broker’s services helps you unlock offers from specialist lenders.

Working with specialist lenders also means that the lender can offer invaluable business insights and advice, making every loan offer that much more rewarding.

5. You Cannot Buy Experience

A reputed broker brings with them years’ worth of experience that you cannot really put a monetary value on.

Such brokers know how to navigate through tricky finance situations that you wouldn’t otherwise be able to handle on your own.

Whether you want to fast-track your BTL loan, get a business loan despite poor credit history, seek guidance regarding a particularly unique valuation and planning permission problem or customise your repayment plan based on your income, an experienced broker like Commercial Finance Network can certainly help you.

6. Brokers Understand Your Affordability Better

Unfortunately, over the years, both borrowers and lenders have time and again managed to downplay the importance of understanding creditworthiness and affordability. This has, quite predictably, paved the way for unreasonably structured, unfairly priced loans that – at times – border on being predatory.

Using a commercial finance broker means you conveniently stay away from this debt trap. Brokers know how to best judge your affordability based on your income, your assets and your spending, allowing them to only produce offers that are in your best interests.

7. Brokers Can Offer Precious Financial Advice

There’s a world of difference between personal finance and commercial finance – a fact many borrowing businesses fail to take into account while applying for a loan.

Poor judgement and uninformed decisions lead to mistakes that the borrower has to live with for years, if not decades. You can get around this problem by soliciting financial advice from a responsible broker like Commercial Finance Network.

Summing Up – Here’s Why You Should Use A Commercial Finance Broker

  • Save time and energy
  • Choose from market-wide offers
  • Save money
  • Benefit from the broker’s experience and expertise
  • Stay away from unaffordable loans
  • Avail expert advice from FCA regulated professionals

Choosing A Commercial Finance Broker – Things To Keep In Mind

Now that we’ve talked at length about what a commercial finance broker brings to the table for you, it’s time to see what you should look for while choosing one.

There are no yardsticks or guidelines set in stone here, but the following points will certainly help you make an informed and educated choice.

1. Are They Licenced And Regulated By The FCA?

This is perhaps the most important question you should ask.

The Financial Conduct Authority is the sole and stringent regulator of all commercial finance activities in the UK. As a rule of thumb, you should refrain from working with brokers who don’t have the FCA licence.

How To Check If Your Broker Is FCA Regulated

Checking whether your broker is FCA-regulated or not is easy. For starters, regulated brokers will have the FCA reference number and other associated information prominently displayed on their website. If they haven’t, you can always contact them regarding the status of their licence.

You can cross-check this information by visiting the FCA register.

For example, Commercial Finance Network is FCA regulated with reference number 796413.

2. Are They Associated With Any Trade Organisations Of Repute?

This isn’t really a non-negotiable, but it still gives you a good idea of the standing the broker enjoys in the industry.

Look for any certifications and memberships that lend credibility to the broker’s operations.

For example, Commercial Finance Network is a proud member of the National Association of Commercial Finance Brokers (NACFB), the largest trade association of UK-wide brokers.

3. Do They Handle Your Data Responsibly?

All businesses are required to handle your personal information and other data they collect responsibly. This applies even more so for brokers who need to collect your important personal and financial details.

When you visit your broker’s website, look for the data protection policy and/or privacy policy page. It is usually located in the footer section of the website.

A responsible broker is typically GDPR compliant and registered with the Information Commissioner’s Office (ICO).

For example, the Commercial Finance Network website is fully GDPR compliant and registered with the ICO.

4. Do They Specialise In Commercial Finance?

Many brokers out there try very hard to merge personal finance products with their commercial counterparts. This isn’t usually a good idea since commercial finance is much more robust in terms of product flexibility and variety.

If your broker offers exclusively commercial finance products like asset finance, business loans, HMO finance among others, it’s a good starting point.

5. Can They Compare The Market?

Whole of market brokers can compare the market and find lenders who are willing to base their quotes on your requirements. In the long run, this has an immense positive impact on your borrowings.

6. How Does It All Work?

Ask your broker the following questions to understand how their services work:

  • Will you need to visit their office?
  • What paperwork does the process involve?
  • Can you submit the necessary documents online?
  • What about the turnaround time on your application?

7. What Are The Broker Charges And Fees?

It’s imperative that you know all about the charges and fees you’ll be required to pay. Many brokers offer no-obligation quotes, while some may require you to pay a processing/admin fee even when you decide not to accept the loan offer.

It’s also important to know and understand when the charges will kick in – before you apply, after you apply or after you accept an offer.

Working With A Responsible Broker Means Working On Your Own Terms

Getting into a finance deal that isn’t cut out for your business’ requirements is never worth it. You will not only be required to repay more than you really should, you will also miss out on a number of features that specialist lenders can offer you.

Commercial Finance Network – a leading whole of market broker in the UK – makes your life easier by finding just the right kind of loan offers for you. Our commercial finance services span the entire range – from all-purpose commercial finance and mortgages to customised asset finance and invoice finance solutions.

24-hour processing, high approval rates, cheap interest rates and flexible repayment – we’ve got everything your business needs and more. Complete this short online form to get started or call us on 03303 122 646 to speak with a Specialist Mortgage Advisor now!

London's commercial property market Bank of England Philip Hammond
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London’s commercial property market bounces back in fourth quarter

Investment in London’s commercial property market rebounded in the fourth quarter as the capital’s risk profile began to improve, strengthened by Boris Johnson securing a majority in last week’s General Election.

Investment jumped 15 per cent compared to the previous quarter, rising to almost £2.8bn, according to preliminary figures.

Property experts at estate agents Knight Frank have forecast that the boom will continue next year, driven by the result of the General Election and the increased certainty surrounding Brexit going forward.

Knight Frank head of capital markets Nick Braybrook said: “Investors have been circling the market in increasing numbers over the last few months, with international capital drawn in by attractive yields and the currency discount compared to other global cities.

“London’s perceived risk profile has improved tremendously through the second half of 2019 whilst geopolitical tensions in markets from Asia to the Middle East have eroded their relative attractiveness boosting the appeal of London.”

Faisal Durrani, head of London commercial research added: “The political uncertainty certainly dampened activity for most of 2019, but a shortage of assets for sale exacerbated this.

“With the decisive Conservative majority secured in the General Election last week, confidence is expected to rapidly return into the market, something investors have been hankering for.”

Figures published by CBRE earlier this week also painted a positive picture for London’s commercial property market.

The data showed that central London office take-up soared 31 per cent between October and November, driven by a growth in the capital’s fintech sector.

Office take-up jumped to 900,000 sq ft, while the year on year increase was five per cent.

By Jessica Clark

Source: City AM

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Edinburgh rebound boosts Scottish commercial property sales to £1.2bn

A Scottish Property Federation (SPF) analysis of the latest commercial property sales figures has shown a rebound in the total value of sales in Scotland in Q3 (July to September) 2019.

In total, £1.2 billion was transacted in the quarter, nearly double the total value of commercial property sales in Q2 (April to June) 2019.

Edinburgh was a key driver of the increase in the value of commercial property sales, with sales in the capital more than tripling to £462 million in Q3 2019 when compared to the previous quarter. Partly as a result of several high-value transactions, Edinburgh dominated the commercial property market in Q3 2019, with a 38% share of the Scottish market by value.

Glasgow also continued the positive momentum with £216m transacted in the city during Q3 2019. Its total value increased by £44m on Q2 2019 and £63m against the same period in 2018.

Commercial property sales in Aberdeen remained steady at £32m. Aberdeen’s total value of sales rose slightly on Q2 2019 (by £2m) but remained £20m below values recorded in the same quarter last year.

Responding to the latest sales figures, David Melhuish, director of the Scottish Property Federation, said: “Q3 2019 was a strong quarter for commercial property sales; however, it comes on the back of a subdued first half of 2019, and the current one-year rolling total is still 3% lower than in the same period in 2018.

“We will be watching closely to see if this momentum can continue in the last quarter of the year, against the headwinds of continued political uncertainty and low economic growth.”

Cameron Stott, director at commercial property agency JLL, added: “The large volume by value has been driven by substantial asset sales which have offered investors either long secure income or the asset is in a prime location.

“This volume also reflects how attractive Edinburgh continues to be notwithstanding the political uncertainty.

“It is also interesting to note the continued interest from foreign investors no doubt seeing the UK as value for money but also benefiting from a more attractive yield compared to many other European cities.”

Scottish commercial property investment volumes also rose sharply on both a quarterly and an annual basis, according to property data experts CoStar UK. Investors spent £798m in Q3 2019, the highest quarterly amount since Q1 2018.

CoStar also highlighted that Scotland attracted more investment than any other UK region outside of London and the South East, with volumes heavily supported by a continuing flow of capital from overseas. It was reported that foreign investors were behind over half of all acquisitions by value, with European and American investors involved in sizeable purchases.

Source: Scottish Construction Now

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RICS: Surveyors sense a downturn of commercial property market

The Brexit impasse is contributing to perceptions that the commercial property market is in the downturn phase of the property cycle, the RICS UK Commercial Property Market Survey has revealed.

Figures for Q3 2019 showed that 62% of surveyors sensed the overall market is in a downturn phase of the property cycle.

Brexit was suggested as having an increasingly detrimental impact on market activity.

Tarrant Parsons, economist at RICS, said: “Although a clear majority of respondents now perceive the market to be in a downturn, the fact that capital value expectations are still positive in many parts of the country suggests a relatively soft landing for the commercial real estate sector is anticipated overall.

“It remains to be seen what impact the latest Brexit developments have on confidence across the sector, but with the picture unlikely to become clear until into the New Year it may well mean hesitation continues over the near term.”

Tenant demand reportedly fell at the headline level with the net balance slipping to -19%.

Interest in the commercial property market fell at a faster pace last quarter with -15% more surveyors seeing a fall in investment enquiries.

By Michael Lloyd

Source: Mortgage Introducer

Scottish commercial property
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Demand for commercial property at lowest level since 2012, says industry report

Demand for office space in the South West has slipped to its lowest reading since September 2012, the Royal Institute of Chartered Surveyors’ UK Commercial Market Survey has revealed.

The survey added that the current impasse over Brexit is contributing to perceptions that the South West commercial property market is in the downturn phase of the property cycle.

The RICS report for Q3 2019 said that enquiries from investors are down at headline level and that 53 per cent of respondents believe that the market to be on a downward trajectory.

Occupier demand in the South West fell at the headline level once again, with the net balance slipping to -19 per cent, the lowest reading since June 2012.

Once again, the retail sector continues to drive the overall decline (net balance -62 per cent, compared to -54% in Q2).

However, demand for South West office space also fell during Q3, with a net balance of -8 per cent compared to -1 per cent in Q2.

Demand for industrial space has a net balance in the region of +12 per cent.

The region’s retail sector continues to have large numbers of vacancies coming to market, prompting another increase in incentive packages on offer to prospective tenants.

Inducements are also on offer in the office sector with 17 per cent of respondents reporting a rise in the packages.

South West respondents to the survey project that rents for the coming three months are expected to rise in the industrial sector, the only sector to see any notable interest from tenants.

Unsurprisingly, the retail sector isn’t expected to improve, some 63 per cent of respondents in the region expect to see further reductions in rents across the market.

Across the UK, retail rents are reading at the lowest level since the financial crisis (Q1 2009).

Looking further ahead, local respondents expect prime and secondary retail rents to fall for the year ahead.

The outlook has turned negative for secondary office rents in the South West, driven by weakening expectations in London.

By way of contrast, the industrial sector continues to return rental growth projections for the coming 12 months in the region.

Interest in investing in the local commercial property market fell again this quarter, with -5 per cent more South West respondents seeing a fall in investment enquiries.

Overseas investment demand also declined across the sectors with a net balance of -9 per cent of respondents seeing a fall.

Tarrant Parsons, RICS Economist, said: “Although a clear majority of respondents now perceive the market to be in a downturn, the fact that capital value expectations are still positive in many parts of the country suggests a relatively soft landing for the commercial real estate sector is anticipated overall.

“That said, the fallout for retail is altogether more severe. It remains to be seen what impact the latest Brexit developments have on confidence across the sector, but with the picture unlikely to become clear until into the New Year it may well mean hesitation continues over the near term.”

Martin Smalley of Gleeds in Bristol added: “Brexit unsurprisingly has created an atmosphere of uncertainty in the regions.

“There are however hotspots around areas of significant infrastructure investment like Hinckley Point C which is fuelling growth across the commercial, retail, industrial and residential sectors.”

By James Young

Source: Punchline Gloucester

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Brexit impasse ‘impacting Scottish commercial property market’

THE Brexit impasse is contributing to perceptions that the commercial property market in Scotland is in the midst of a downturn.

The latest Royal Institution of Chartered Surveyors commercial property market survey has found anecdotal evidence suggesting that the process to leave the European Union is having an increasingly detrimental impact on market activity, with inquiries from potential investors in the third quarter lower than during the previous three months.

The latest results show that half of respondents in Scotland sense the overall market is in the downturn phase.

The highest proportion of respondents in Scotland since 2016 in the investment market said that inquiries from potential investors were lower than in the previous quarter.

The net balance for overall investment inquiries in Scotland during the period was -34%, meaning that 34% more respondents said that investment inquiries fell than said they rose.

The retail sector continues to drive the overall decline, with the weakest reading since 2008, showing a net balance of -70%, which is the weakest across the UK.

Demand for office and industrial space in Scotland was reported to be broadly flat.

Interest in investing in retail was the weakest according to respondents, but investment inquiries were also reported to have fallen in the industrial, where there wasa net balance of -14%, and office, where it was a net balance of -20%, sectors.

In the occupier market, tenant demand reportedly fell at the headline level in Scotland for the fourth consecutive quarter, with the net balance slipping to -22%, from -3% previously, RICS said.

Scottish surveyors are cautious looking ahead about rents in over the next quarter. The overall net balance for three-month rental expectations is its weakest since the second quarter in 2016 at -23%.

However, this is driven by pessimism regarding retail rents, with a net balance of -65%. Expectations for office and industrial rents are broadly flat.

RICS said Scottish respondents are more positive about the value of industrial and office property, with the balance of respondents pointing to modest growth in capital values in both sectors in the near term.

Richard Smith, of Allied Surveyors in Inverness, said: “The market over the last three months has been affected by political uncertainty. Clients tell us that they will invest when the uncertainty is removed, regardless of how that is achieved.”

David Castles, of Ian Philp Glasgow, said: “Office and industrial sector capital values will improve but supply of prime office developments is restricted, and more investment is required which hopefully will improve once market uncertainty is reduced.”

Tarrant Parsons, RICS economist, said: “Although half of respondents in Scotland now perceive the market to be in a downturn, the fact that capital value expectations are still positive suggests a relatively soft landing for the commercial real estate sector is anticipated overall.”

Meanwhile, research from Grant Property has shown investors from South East Asia are cashing in on the opportunities provided by a drop in the value of the British pound and increasing yields and rents in the UK buy-to-let market, especially with student flats.

The firm reported a surge of interest from Hong Kong and Singapore as new and existing investors are purchasing more buy-to-let properties to add to their portfolios. An increase in rents as high as 15% over the last 12 months alone, combined with steady long-term capital growth on average 7% per annum, are factors which are making UK property an appealing investment prospect, it said.

Peter Grant, founder of Grant Property, said: “In the last year we have sold over £38 million worth of properties to overseas investors and we are currently dealing with 25% more enquiries than this time last year.

“Investors see the uncertainty of Brexit as an advantage and are capitalising on the opportunity to snap up traditional flats in UK cities, particularly where there is a student population.”

By Brian Donnelly

Source: Herald Scotland

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An alternative future for commercial property

DIVERSIFICATION throughout commercial property portfolios, by private and institutional investors, is a long-standing tactic but has tended to centre around a select number of core commercial real estate classes.

That has changed in the post 2008 environment, as the industry has seen a growing appetite from investors in ‘alternative commercial property assets’ and the rise in levels of investment in these asset classes across the UK and Ireland is starting to be felt north of the border here in NI.

Figures announced for the UK mainland at the start of this year show that in the first quarter of 2019 investment in these alternative real estate assets, such as hotels, private residential, student accommodation and care homes, reached a record 42 per cent share of the overall UK investment market for the quarter. Analysts report that this has been the highest share on record following 29 per cent and 35 per cent growth in this sector in quarters three and four 2018.

The proportion of Northern Irish investment transactions that fall into the alternative category doesn’t presently come close to this level, but there is no doubt that alternative property assets are increasingly piquing the interest of those investing in the province.

The proliferation of hotel investments in Belfast city centre across the past 24 months is well documented, in parallel with heightened investor interest in student accommodation as the Ulster University campus takes shape on Royal Avenue.

Unfortunately, the unexpected delay of construction at the university campus served to cool the later for a time, but several significant student accommodation schemes are now nearing completion with others coming online as the construction of this vibrant new part of Belfast city centre proceeds.

Other ‘alternatives’ including build-to-rent schemes that facilitate city centre living as well as alternative uses of traditional retail spaces that incorporate leisure facilities, entertainment and community alongside healthcare provision are becoming increasingly attractive to investors in the province as the The Belfast Agenda strives to make Northern Ireland’s capital home to an additional 66,000 people by 2035.

Residential letting schemes in Belfast with concierge services, gyms and residents’ lounges may be a novelty today but based on the wider UK and Irish markets the time when these represent a solid investment, even for the risk-averse institutional investor, might not be too far away.

Markets are changing, as are attitudes, incomes and the priorities of the people in general. Almost 25 per cent of UK households are expected to be living in rented accommodation by 2030, so it is unsurprising as models like build-to-rent start to become more common other ‘alternative’ investment options will follow suit.

By Declan Flynn

Source: Irish News

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Commercial property sales fall for second quarter but Glasgow bucks trend

Commercial property sales values in Glasgow surpassed those of Scotland’s capital for the first time since 2015, new research has found.

Analysis of Q2 2019 data by the Scottish Property Federation (SPF) showed that the total value of commercial property sales in Scotland continued to fall.

At £614 million, sales were the lowest in five years. While sales values fell, the number of transactions increased, indicating a decrease in higher value transactions rather than a lack of activity.

However, Glasgow broke from the national trend with the total value of commercial property sales rising against both the previous quarter and the same quarter in 2018. Sales in Glasgow totalled £172m for Q2, accounting for 28% of Scotland’s total commercial property sales.

Edinburgh lost its dominance to Glasgow in Q2 2019, following a significant fall in the total value of commercial property sales. At £108m, Edinburgh’s sales values decreased by £156m on the previous quarter and £14m on Q2 2018. The proportion of Scottish commercial property sales located in Edinburgh fell from 35% in the previous quarter to just 18% for Q2 2019.

SPF director David Melhuish said: “Glasgow was very impressive this quarter, outperforming Edinburgh for the first time in four years against a wider Scottish market that saw a reduced value of sales activity.

“Glasgow’s sales increase was fuelled by a number of £5m-plus deals, totalling £129m, whereas Edinburgh only secured £33m in the same category.

“A notable feature of Scottish commercial property investment in the Q2 period was the rise of capital sourced from Asia, which topped £250m for the first time on record, according to CoStar data.

“Ryden reported a standout £48m transaction for a Korean client of Knight Frank Investment Management.”

Source: Scottish Construction Now

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Glasgow beats Edinburgh for property deals

INVESTMENT from Asia helped the value of commercial property deals in Glasgow exceed Edinburgh for the first time since 2015.

However, the overall value of deals continued to fall in the second quarter, according to the Scottish Property Federation (SPF).

Deals worth a total of £172 million were concluded in Glasgow in the second quarter, up from £104m for the same period last year, compared with £108m in Edinburgh, down £14m.

It was the first time the value of deals in the west exceeded the capital total since the first quarter of 2015, with the market in Glasgow boosted by the £48.4m purchase of 110 St Vincent Street by South Korean investors. The building is occupied by Bank of Scotland.

While deal values rose in Glasgow, the overall value of sales in Scotland slipped to its lowest in five years, at £641m.

SPF director David Melhuish said: “Glasgow was very impressive this quarter, outperforming Edinburgh for the first time in four years against a wider Scottish market that saw a reduced value of sales activity.

“Glasgow’s sales increase was fuelled by a number of £5m-plus deals, totalling £129m, whereas Edinburgh only secured £33m in the same category.

“A notable feature of Scottish commercial property investment in the Q2 period was the rise of capital sourced from Asia, which topped £250m for the first time on record, according to CoStar data.”

By Scott Wright

Source: Herald Scotland