Posting this as the London & NYC commercial real estate markets have moved in a lock-step fashion in the past several years. The effect is the potential spill over into the banking system which doesn't need the added pressure at this time. In the new world economy where most major economies are financially linked, what happens across the pond can have an impact (either positive or negative)... [more]
Posting this as the London & NYC commercial real estate markets have moved in a lock-step fashion in the past several years.
The effect is the potential spill over into the banking system which doesn't need the added pressure at this time. In the new world economy where most major economies are financially linked, what happens across the pond can have an impact (either positive or negative) over here.
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Aug. 22 (Bloomberg) -- London developers are adding the equivalent of 160 trading floors of office space in the main financial district in the next two years. Their timing couldn't be worse.
Prices for offices in the City of London have plunged 25 percent since last August, the biggest drop since 1992, according to Investment Property Databank Ltd., and rents are declining for the first time in four years, said CB Richard Ellis Group Inc., which estimates rents may drop by a quarter by the end of next year. The commercial property market won't recover until at least 2013, said Mike Prew, a real estate analyst at Lehman Brothers International Europe in London.
U.K. property stocks have fallen by more than half since Britain introduced real estate investment trusts in January 2007. The shares may fall by another 23 percent by the end of 2009 as building values decline and the country slides into a recession, said Morgan Stanley analyst Martin Allen. He has the lowest price target of any analyst covering British Land Co., the biggest landlord and developer in the City.
Entire article:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aPm0gEaUR6SM&refer=home[less]
Response by dco
over 17 years ago
Posts: 1319
Member since: Mar 2008
Stop with this non-sense. There is no problem. American businesses(foreigners), will save London's commercial RE market. Many of the financial firms, plan to expand, in the next few months. This will make commercial RE in London skyrocket.
Ignored comment.
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Response by mbz
over 17 years ago
Posts: 238
Member since: Feb 2008
Just to give everyone a sense for the lag inherent in the physical real estate market - British Land Co. stock peaked in late-2006. And just now we're starting to see rents fall quickly. The stock market has spoken - property prices will follow.
Stop with this non-sense. There is no problem. American businesses(foreigners), will save London's commercial RE market. Many of the financial firms, plan to expand, in the next few months. This will make commercial RE in London skyrocket.
Just to give everyone a sense for the lag inherent in the physical real estate market - British Land Co. stock peaked in late-2006. And just now we're starting to see rents fall quickly. The stock market has spoken - property prices will follow.