Commercial property investment: market opportunities in turbulent times
The week has illustrated the difficulties central bankers are having communicating their intentions while economic conditions are evolving rapidly.
1 minute to read
To get a better feel for how global investors are digesting it all - specifically from a commercial property perspective - Liam Bailey speaks with Will Matthews, Knight Frank's head of commercial research, and Simon Marx, research head at Lothbury Investment Management.
In this podcast we explore:
- The cost of debt rising
- Market opportunities as traditional investors show caution
- How bond yields are impacting sentiment
- What sectors will continue to deliver
Commercial property markets 2023
There has has been debate around the fall in values going into 2023, but Will highlights that despite some commentators speculating on falls of 30% or more, we have only seen 10-15% across the market so far.
Simon points to the continuing rise in interest rates that could impact leveraged buyers and the interest rates could start to impact the real economy, including consumer spending and mortgage costs, amongst others, that will affect sentiment.
Lessons from global financial crisis
Property has a role to play throughout the downturn and previous downturns have had many different factors that impacted those periods, Simon says. He adds that commercial property can still deliver what investors want in terms of partially inflation-tracking income.
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