Commercial property deals slowly making up ground after referendum

More than a third of commercial buildings that were on the market prior to the referendum have been completed at a value of £4.6bn, according to a new survey.

Cushman & Wakefield, which has tracked all commercial property that was on the market on the day of the referendum, found that four months on, there has been “consistent but slower progress in deal activity”.

It reported that 33.5pc of buildings on the market on 23 June have been sold, with London making up 36pc of the deals. 48pc of buildings on the market before the referendum have been completed or are under offer, with a combined transaction volume of £6.6bn.

Nigel Almond, head of EMEA capital markets research, said: “The next few weeks will provide a clear market barometer with over £1bn of assets expected to go to best bids.

“More positively, several deals which were pulled in the immediate aftermath of the vote have returned to the market with adjustments to pricing. The past month has also seen plenty of new investments offered to the market.” 

The report also revealed that commercial properties which have completed since the referendum have been reduced in price by an average of 2.8pc. This fell to 1.7pc on lots under £50m, and was 3.9pc on those above that price.

Jason Winfield, head of investment agency, said: “Initial concern of a collapse in prices has not materialised,” adding that there was little variation between price falls in London and the rest of the UK.

The report also found that 80pc of overseas investment since the referendum has been in London, as they took advantage of the low sterling level.

Outside London, domestic funds have been “particularly active”, Cushman & Wakefield said, adding that the crisis in open-ended funds, which saw some including Henderson to temporarily close, was limited.

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