FREEHOLDS, FREEHOLDS, FREEHOLDS!
The commercial property markets in Essex/East London has never before seen such a demand for freehold property. The owner occupier market has suffered from the lack of commercial property development over the last 7-8 years and this is showing no signs of letting up.
The majority of commercial development land is controlled by institutions/pension funds wishing to build then hold the asset to generate a return for their investors. This means the freeholds for small to medium size businesses are in short supply in the grade A and second hand market.
This is creating significant upward pressure on prices for brand new and second hand property. We have recently seen record prices being paid in Essex and East London for industrial property. Peter Higgins of Glenny has recently sold a 22,000 sq ft freehold property in East London trading for over £200 per sq ft!
Can this be sustained? and will the valuers starting getting scared and down valuing? are we at the peak of the market?
It will be interesting to see how 2016 unfolds.