Key trends in commercial property 2011-2012

Wednesday, November 09, 2011 | Posted by: Grant Thornton
Categories: Property & Construction | Tags: property, report, FT, trends, Clare Hartnell, conference, commercial property, London, real estate

What were the main discussions at this year’s Financial Times Commercial Property Conference?

Clare Hartnell, Head of Property and Construction for Grant Thornton, reviews the event, which was lead-sponsored by Grant Thornton. We’ve also produced a conference report, packed with insights and expert comment – download it for free below.

It’s hard to think of a time when strategic thinking was more important. The commercial property sector is more complex and demanding than ever, and all the players have had to realign their expectations to meet the tough realities of today’s market.

The FT’s chief economics commentator Martin Wolf framed a gloomy, though probably accurate, forecast for the coming year. Growth will be slow, while the fiscal policies needed to get through these difficult times will be complex.

Peter Damesick, Chief Economist for CB Richard Ellis, pointed out that cash from non-European overseas investors is primarily being spent in London, with Paris significantly lower, albeit still in second place.

It appears that banks will continue to selectively release their assets in a measured way over the next few years to get the best value for money. However, one thing seems clear – there is still high demand for property in the right places.

In fact, this year was a story of cities. The entertaining aside from British Land’s Tim Roberts that “the riots didn’t really help us much, did they?” belies the reality that London is still a place where opportunities can be excellent. It’s plain economics. There are the necessities of supply and demand, and while not all of London – let alone the wider UK regions – is going to benefit, the fact is that people want and need good quality and good value property in the capital.

This simple economic viewpoint seems to be the most persuasive one, and by far the only sensible way to approach what’s happening in the market today.

Download our 2011 conference report
You can read more about the discussions that took place at the conference in our Financial Times Commercial Property report. The contents include:

• An analysis of the bigger picture facing commercial property by the FT’s Martin Wolf
• Current market trends for the UK and European markets by Peter Damesick
• The post-crisis portfolio – how has the approach of institutional investors changed since the crash?
• Risk management, investment transparency and regulatory compliance
• The future of real estate finance
• Sustainability in property and construction
• Market predictions

There are also more details of the event on the official FT Commercial Property Conference 2011 website. Also see our Real Estate and Construction pages for sector services.

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