Cheap Flats In London

Falling hotel occupancy levels and room rates mean that there is less income for hotel investors, many of which have financed these commercial properties through high levels of borrowed debt. As a reaction to the adverse market conditions many hotels are now offering rooms at highly discounted rates. The three and four star hotel market has been hit especially hard and they have had to heavily discount their room rates in order to remain competitive. Holiday Inn / Holiday Express have implemented a credit crunch action plan which includes lowering their rates to around £21 pp in the UK, increased promotions and marketing to their customers and target audience, and asking suppliers for either better terms or lower costs so that they can continue to remain competitive within the hotel commercial property industry.

Budget hotels are not completely recession proof either and companies such as Travelodge have experienced a fall in business stays and leisure at the weekends. However, despite these slight declines they are taking full advantage of the credit crunch’s effects on the commercial property market and have purchased several great value real estate deals that before the recession would have been unavailable to them.

Budget hotel chain Jury’s Inn are also taking full advantage of the increasing demand for budget hotel accommodation that has been created by the recession and are spending £90 million on opening four new hotels across England and Scotland. They are developing hotels in Portsmouth, Bradford, Newcastle and Glasgow as part of their plan for accelerated growth. They are hoping to take full advantage of the trend for business users and British tourists to stay in cheaper hotels and have also secured several lucrative commercial property deals that before the credit crunch simply were not feasible or available to them.

Despite the overall economic downward trend in the UK there have been nationwide sales increases for budget and cut cost retailers and service providers, whether they provide food, clothing or leisure breaks. The UK consumer products and commercial market is becoming increasingly buyer led. Consumers are finding that there are great offers available to them either through heavy discounting of high end brands or through taking full advantage of budget products and services that are also offering promotional pricing and offer based marketing to their customers. Travelodge and Jury’s Inn are taking full advantage of this trend and are setting themselves up for long-term growth with new commercial properties and increased customers.

Despite the overall decline in the UK hotel market cash rich buyers will find that over the next couple of years there will be some great hotel commercial property investment opportunities available to them.

UK commercial property returns in 2008 are set to be the worst recorded for eighteen years and RICS has warned that commercial property values could still fall by a further 25% over 2009 and 2010. For tenants looking for commercial properties to lease this isn’t all doom and gloom as it is resulting in commercial real estate landlords offering increased inducements, incentives and sharp drops in their rents.

The credit crunch has hit the financial services and properties industries the hardest. Canary Wharf is currently one of the most exposed areas in the UK and facing the threat of increasingly empty buildings. As the financial district of London it has been hit hard by the credit crunch and potential tenants have found that there are now many bargain lets to be had.

Despite the negative effects on the financial and properties sectors some industries are in fact seeing and upturn as a result of the credit crunch and are actually seeking out more commercial property. Certain sectors are now actually in their element as a result of Britain’s tightening purse strings. Cash convertors, the Australian founded company that provides pawn broking and other cash raising services has experienced a significant growth in profits compared to previous years which corresponds with the overall decline in the economy and has actually opened a higher than average amount of new stores this year. Their customer base has widened in variety too with it now not being uncommon for city businessmen to visit the store because they need a short-term, quick cash injection.

Other industries experiencing upturns are bailiffs, tax advisers, takeaway providers and any kind of budget provider such as budget hotelier Travelodge or budget supermarket chains Lidl and Aldi. As a result of redundancies and investment downturns some people are having to make huge cutbacks however, the majority are looking for smart ways to save money that don’t affect their current lifestyle too much. For example, having a takeaway or going to a cheaper restaurant rather than fine dining; shopping at a cheaper supermarket and using cheaper hotels for business travel. Companies seeing an upturn despite or in fact because of the credit crunch are in a highly enviable position. Not only are they seeing increased profits but they are also making plans for expansion when the rest of the UK is sitting tight or planning cut backs. Their expansion plans will benefit even further from the credit crunch due to the fact there are now a lot of cut price commercial properties available to these businesses that previously may have been inaccessible.

Many of today’s headlines are quite rightly concerned with the international downturn the credit crunch is causing. Tales of redundancies, bankruptcies, slashed sales figures and financiers losing millions from their real estate investments are reported on a daily basis. Consumer confidence is falling and Great Britain is officially on its way to recession. One of the hardest hit sectors is the properties industry with realtors worldwide experiencing huge downturns in profits. Commercial properties simply aren’t leasing or selling and personal property sales are also at an all time low. Land is no longer worth its weight in gold and financiers are panicking and rapidly decreasing their investment property portfolios. However, some industries have benefited from the credit crunch. One of such industries is the discount food sector which has been experiencing unprecedented growth during what they are calling a credit crunch boom.

Aldi one of the key discount food retailers has recorded a record 23.9% year on year growth for the year ending November 2008 and plans to open between forty and fifty new stores a year across the UK and Ireland in a massive commercial property investment. One of Aldi’s key commercial objectives for the following year is to join forces with discount hotelier Travel Lodge. Aldi and the budget hotel chain plan to develop joint hotel and store sites throughout the UK and are currently undertaking a major commercial properties investment. The first joint hotel and store site will be in Newquay Cornwall and is due to open in the autumn of 2009. Travelodge are planning to develop a 74 room hotel above Aldi’s existing Newquay store. The next joint venture will be undertaken in Middlesbrough and will involve the pair becoming involved in a commercial property deal to launch a joint store and hotel in November 2009.

The Managing Director of development for Travelodge has reported that this new venture is enabling both companies to send out a clear message to the UK that the UK budget sector is going to make the most of the economic downturn. The credit crunch means that there are more commercial properties for sale and for lease available on the market than ever before giving Travelodge and Aldi availability to commercial property that wouldn’t have been accessible to either of them before.

The budget food and hotel sectors aren’t the only industries benefiting from the credit crunch and several online dating companies have seen an unprecedented increase in new members since the economic downturn has taken hold. New members are reportedly looking for new ways of meeting people that don’t involve spending money out on the town.

The worsening economic conditions have now taken their toll on almost every commercial property market in the world, according to a global survey of real estate surveyors. The past few months has shown a sharp decline in the need and demand for real estate in areas that had previously appeared immune to the current economic crisis. In particular parts of Asia and Eastern Europe have been affected with realtors’ allegedly reporting record downfalls in the demand for commercial properties. The Indian commercial property market has been especially hard hit and one of the biggest slumps in real estate values has been seen in Eastern Europe a region that up until recently was experiencing a boom in their building and developer industry. Areas such as Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, Russia, Slovakia, Turkey and the Ukraine have all reported a fall in land and real estate values, with Russia being the hardest hit country.

The credit crunch has literally burst the Bulgaria property bubble with financiers desperately trying to sell any investment property they have there. Bulgaria’s economy has been left in a serious state due to heavy investments into tourism and commercial property in preference to expenditure on manufacturing and exporting.

Russian commercial property investments are also being put on hold as the now global credit crunch sets in. Developers in Russian cities are postponing projects due to lack of capital, with shopping centres and malls being the most affected. Major cities such as St Petersburg and Moscow are feeling the financial pinch as well as regional cities whose plans for expansion have had to be put on hold.

However, some countries are showing more resilience than others to the economic downturn. RICS research has shown that China’s commercial property market has shown more resistance with some actual increases to be expected in the number of commercial property that is being leased and sold throughout China in the upcoming months.

Central London is another city that has been hit hard by the commercial property down turn with investment funds that specialise in retail developments and office blocks being especially knocked by the slump. Retailers are being encouraged to fight the downturn in sales this Christmas by ensuring they provide unrivalled brand value, competitive consumer focussed pricing and value added promotions that encourage repeat purchase activity as opposed to the usual seasonal glitzy TV campaigns.

Areas such as Canary Wharf that are at the heart of the financial services district in London have already experienced many sharp decreases in office rents.  Landlords are offering their once lucrative tenants decreased rents and better value inducements in order to keep their London commercial property occupancy levels up in an attempt to try to counteract the effects of the credit crunch.  Investment banks and commercial banks have had a tough year and nothing demonstrates this more than the increasingly empty office spaces in the centre of London’s financial district.  However, it can be argued that despite this it is the London hedge fund businesses that have been the most hard hit.  These once lucrative companies used to have their pick of swanky London commercial property but as the credit crunch has taken its toll their once plush and buzzing offices are being vacated at an alarming rate.  During the hedge fund sector boom the cost of London commercial property was of little importance to these businesses.  The high profitability that many of them enjoyed meant they were willing to front the cash and substantially outbid any rivals in order to get their staff into the right location and office space for their business.  Swanky areas such as London’s Mayfair were buzzing with profitable hedge fund businesses that were willing to pay steep rents in order to be located in a prime London commercial property location.However, the current economic downturn has hit these businesses hard.  The downturn has forced hedge fund businesses to either vacate their office space or renegotiate rents as part of a cost cutting exercise.  This has left landlords with little choice than to reduce their rents and increase their inducements or see their office space stand empty.  As a result leasing rates for swanky London commercial property offices in plush areas such as Mayfair and St Jame’s declined by almost thirty percent last year. It is not just the financial businesses in London that have been affected by the downturn.  Average rents fell by approximately 19% across London at the end of 2008 compared to the end of 2007, however, it is the financial areas that have been hardest hit with rents falling significantly below the average decreases.Despite the hard ships currently bestowing London commercial property owners and investors the next few years are expected to bring some amazing UK property investment opportunities to cash rich buyers who will be able to take advantage of some great commercial property offers and deals.

Today’s constantly fluctuating property market can make investors nervous about committing to commercial property yet investing in commercial property in London remains a concrete investment as there is always a high demand for commercial property in a prime location and if the building is in good condition and well maintained, a return of investment should be fairly easy to redeem.

If you are contemplating leasing or buying a commercial property it is important to understand industry talk to ensure you get the best deals available to you. The best way to ensure you are not getting ripped off is by seeking professional expertise from a property consultant or specialist in the commercial property sector. This will ensure you will be able to increase your understanding of this niche market as well as knowing the specialist will be seeking out the best deals and negotiating them on your behalf, saving you considerable effort, time and ultimately money.

By recruiting the help of a property consultant you will make sure your property journey runs smoothly and in a more focused manner. Just like buying a car where you take advice from the dealer, a property consultant will advice you on all your property queries.

Their expert knowledge on location is outstanding and their previous experience with clients’ shines through. They know exactly what location would be right for your business and help you through all of the advantages and disadvantages of working in specific areas all over the capital. Whether it’s the West End The City or Mid Town that you are looking for it’s likely commercial property specialists would have got the deal done there before so are much more aware of the prices the benefits and the rip offs property hunters can encounter.

The property game can be all about timing things right in order to get the best deals, or it might be striking while the market is in a slump which means good negotiation skills from commercial property specialists to get some fantastic long term flexi rate contracts.

Location is really important to any business and when you are looking for new commercial property premises then you must make sure you know as much information as possible about the area. Finding out what kind of local businesses are around can be great for business contacts and can contribute to the successful running of a company. When looking for commercial property in London you should also investigate local transport links to see how you and your employees can get to work, such as the nearest underground stations and bus stops. All of these things can be made easier by liaising with a commercial property agent.

In this time of restless global finance there are many reasons why the purchase of commercial property is not a favourable option. And in any such market the time to lease has never been more appealing an option. ‘Why buy now?’

This is the question on many lips. In a commercial property market which is so unsteady it is the uneducated individual that put’s all their equity eggs in one basket. For a long term investment in commercial property, buying still may remain an area which could make a decent return, however it is essential that you way up all the pros and cons and get sufficient advice from a commercial property expert. Assessing the area that you are investing in is also of paramount importance.

If you are thinking of letting or buying commercial property in London then you will not only need the insider knowledge of the area, again the best people to contact are specialists in commercial property, but you will also need to assess long term plans for the future of the area. When looking into this it can often be that the area has plans for better transport links and redevelopment making it a good place to invest in commercial property. If you are leasing commercial property you may be looking into leasing a variety of different types of commercial property.

There are three main categories for commercial property, these being retail commercial property, industrial commercial property, and commercial office space. By renting any of these types of commercial property rather than buying you will be in the most positive financial situation. Firstly, you will not have any negative equity, and secondly you will only have rent to consider which will help for forward planning and cash flow forecasting which is always welcome in a difficult financial global market. If you are thinking of leasing commercial office space London then there is a large amount of office space available.

A popular option for renting commercial office space is serviced office space. This option generally means that you will pay a one figure monthly charge and there will be many additional services included in this price. Some typical inclusions for this fixed rate commercial property charge are electricity, in fact all utility bills, council tax, phone line rental and own phone line, broadband internet, manned reception, shared use of facilities like a kitchen and bathroom and in many occasions shower facilities and security. If you are a start up business then this area of commercial property London is often the most appealing option.

You can also often get short term flexible contracts on serviced office space and if you are working alone you may also want to consider the option of a hot desk in one of London’s prime central locations. Or if you are working from another area of the country you may wish to consider a virtual office with a London postcode.

Looking for the right kind of commercial rental opportunity can be a nightmare especially in London. From area to area, especially within the London commercial property sector, prices can catapult from low to high and without knowing the ins and out of the area and the average rates you are expected to pay, finding that commercial property in London can mean a lot of time wasting. The best way to save time is to contact a specialist commercial property agent who is used to the market even in this current climate of property unease. They can help you to find an ideal commercial property in an area of your choice or their recommendation. If you are new to London then this advice could be the difference between business success or failure and if it is office space you are looking for than the area can also have an effect on your clients. Letting commercial property in London in a struggling market place means that by your investment now you can secure a good deal for the future and at the same time make a small impact towards steadying out this fluctuating market place. Investment from overseas such as the Middle East and Germany has caused a rapid increase in interest for commercial property and some specialists see now as the turning point for the market. If so those who have been sitting back and waiting for the lowest point in the market to invest are running out of time. Commercial property London is an area which has been steadier than around the rest of the UK. Due to high demand the city has not seen as bleak an outlook since the start of the property crash and London remains a sturdy investment opportunity for those wanting to buy or rent London commercial property. Making the battle for your ideal property easier are the specialist agents, and so for help or assistance contact one that has considerable experience in the marketplace.