Commercial property feels the full force of credit crunch

The full force of the credit crunch is now being felt by the European commercial property market, according to new research by Cushman & Wakefield.

John Duckers, Business Editor, Birmingham Post - 26 May 08

It said investment volumes in the first three months of the year fell 37 per cent on the same period in 2007, while yields rose at their fastest since 1992. In the UK, volumes fell 52 per cent over the same period.

And, with confidence shaken and uncertainty over pricing impacting almost as much as the lack of affordable debt, the market is ready for more woe to come.

To date, however, the occupational side of the market has held firm, with prime rents rising 11 per cent in the year to March. As a result, total returns have remained in positive territory, with an all-sector prime average of 7.1 per cent for Western Europe - full article