S H Commercial

Commercial Property

Shops Offices and Industrial Premises

Located in Ealing SH Commercial is an agency with a fresh approach to the business of commercial property. We provide three main services to the property market; commercial agency; Professional Chartered Surveyor Services and commercial property management.

We believe that our clients want a high level of professional service, quality advice, regular feedback and of course results.

Clients deal directly with the principals of our agency and decisions are reached quickly. As chartered surveyors we deal with all aspects of the commercial property market including retail, office, industrial and development. We provide advice on the sale or letting of property, rent reviews, lease renewal negotiations as well as providing a commercial property management service for clients.

SH Commercial covers commercial property throughout the West London area for agency work although professional services and property management are undertaken nationally.

News

The commercial property market seems to have divided itself into 2. The large investors have seen substantial write downs of their portfolios by the major national surveyors and valuers. The respected IPD monthly index of property returns dropped 7.6% in the 12 months to January. The biggest component of this was the reduction in capital values which sunk by 12% over the period. Retail was even worse at -13.7%. On the more cheerful side property rents are still rising with an overall increase of 3.4% for the year.  This pretty much continues the trend of 2007 with total returns coming down from 17% a year ago to the -7.6% now. The IPD Index reflects large prime (or near prime) offices, shops and industrial property.

As far as yields are concerned the Jones Lang LaSalle index of prime yields showed little change at 5.37%.

This contrasts with the market for smaller properties. Here there seems little sign of a reduction in pricing. At the recent Allsop’s commercial auction bank freeholds were selling at yields below 5% with no reviews for 5 years. Even shops with prime tenants such as WH Smith and Age Concern were selling at just over 6%.

However, the noticeable effect of the “credit crunch” is the reduced number of deals with a 40% reduction in the number of properties on offer by 40% but there are still buyers out there as the success rate is 85%.