Commerical Property Business, Pearl & Coutts On The 'End Of The Depression'

Top Quote Pearl & Coutts give their reaction to the IPD's announcement that in the first quarter of 2010 the UK property sector saw the highest growth in commercial property prices for 2 years. End Quote
  • (1888PressRelease) April 28, 2010 - IPD, the property index, announced the highest growth in the UK commercial property sector for 2 years on the 16th April 2010. Despite recent negative reports on the sector, the news of growth indicated the market has weathered the recession and is coming out in good shape.

    Pearl & Coutts is a commercial property landlord and lettings agency in London. They have specialised in commercial property for over 40 years and see the IPD figures as a very positive indication for the market.

    Commercial property is one sector where the media has not been slow to give doom-laden reports during the last 2 years. Words like "nightmare", "falling rents" and the like have been bandied about. Yet the IPD announced a 3.9% growth in commercial property values in the 1st quarter for 2010. In fact, they say that prices for some properties have attainted the same levels as those of 2007, before the global crisis began.

    Pearl & Coutts responded with characteristic enthusiasm to the latest figures, having remained optimistic throughout recent times.

    "We had said before that it wasn't worth getting too upset by the market. People think, when property is going up it will never stop and again, and that when it's going down that will never stop. This of course just paints a far too simplistic picture of the marketplace."

    In March 2010 alone, the IPD announced a 1.9% growth, with media speculation inferring that a lack of high-quality office space in London has played a role in reinvigorating the market. In terms of selling prices, some property prices have risen to those seen in 2007.

    "It was frustrating for some time; we either bought very selectively or held off altogether. Instead, we began focusing on keeping existing properties fully occupied. If you have good quality stock, the main thing is to focus on making sure your rental income is optimal, rather than chase buying when the market just isn't ripe for it".

    The IPD also reported office rents have experienced welcome growth for the first time in 2 years, albeit a little marginal. The combination of growth in both commercial property values and the first growth in office rental incomes has been interpreted as the emergence from market decline by some national media. In the meantime, Pearl & Coutts still feel there were always golden opportunities in the commercial sector fi you know where to look.

    "There was a phase when property shares were going for a song in the last few years. That was the time to be awake to those possibilities, not focusing on what wasn't necessarily steaming ahead. In the long run, the market never stays down and you'll be missing out on some superb opportunities if you can't stay focused."

    Pearl & Coutts portfolio of property heavily features office space and retail units in London, with extensive property in 'hotspots' such as Noho, the sought-after 'north of Oxford Street' counterpart to Soho. According to business media pundits, this leaves them ideally positioned for the coming years. Yet many of their Noho purchases in this area were made long before other developers showed interest.

    "The market does have its quieter times, but it's always a case of continuing to find those opportunities for the longer term. When the market changes again, those acquisitions simply mature. It would be foolish to feel hard done by in the quieter times, we're never really that depressed by them."

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