Commercial property meltdown - and 50% off ALL property values from peak predicted

Generali

Anyway, off to bed for me. Hopefully I'll not be posting again until your bedtime!

monkeyman1974

furndire wrote: »

About time too. It may give some businesses a chance. We came out of our shop nearly 3 years ago when the rent doubled.

this may be misdirected at you, as I suspect you are a smaller business with a less established capital base BUT

retail tenants do have a choice, they can buy premises, but generally they require a higher return on investment than institutional landlords. This can be seen by the large number of sale and leaseback transactions over the last few years, which frankly have crippled certain offers - woolies, debs. Now I appreciate these were sold back into the shareholder world and looked good at the time etc etc

this is not hindsight, I work in commercial property and have sat on occupier panels as a token landlord (having worked for a major food retailer before I was a soft target) and was amazed by the ignorance of the average occupier participant.

anyway, for what it's worth 50% is probably correct for retail warehouses and london offices, which were sold off low initial yields on the expectation of future rental growth

to the poster, you do have my sympathy on rents, (as well as Rates for that matter) as the general system of rent reviews by reference to comparable evidence will mean everyone is lumbered (ish) with the rent the most profitable retailer on a street or park can pay, and has its rates set accordingly too.

Airwolf1

djm1972 wrote: »

The fact that landlords now have to pay business rates on empty commercial property (after a small period to give them a chance to re-let) isn't "helping" (from the Landlord's point of view)!

The limit will be increased to £15,000 (iirc) from 01/04/09, so anything with a Rateable Value of less than £15,000 will be ok.

There are some landlords who have actually leased their property rent free for a period, just so they don't have to pay the business rates.

epz_2

Airwolf1 wrote: »

The limit will be increased to £15,000 (iirc) from 01/04/09, so anything with a Rateable Value of less than £15,000 will be ok.

There are some landlords who have actually leased their property rent free for a period, just so they don't have to pay the business rates.

That's great to hear, taxing unoccupied business premises was about the only competent thing this government has done in the past 5 years.

Surely we can all agree its better to have a widget seller employing people and adding value to the economy rather than sitting on the dole because they wouldnt make enough profit to cover the rent. Likewise its better for joe public having comercal premises occupied and providing a service.

neverdespairgirl

perfect winter days here - thick frosts, bright sunshine, clear blue skies.

Generali

neverdespairgirl wrote: »

perfect winter days here - thick frosts, bright sunshine, clear blue skies.

About 34C today and really humid. Properly humid.

I cleared out the car this morning and had to sit down and drink a litre of water afterwards.

neverdespairgirl

Here, you can have a nice brisk walk with the dog, wearing sensible shoes, a thick coat, and drink a mug of tea afterwards...

Generali

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Removing personal stuff

MiserlyMartin

Lovely. Alright for some.

Generali

MiserlyMartin wrote: »

Lovely. Alright for some.

It cost me a few bottles of fizzy drink.

The boat owner is a mechanic by trade and sees a 'boat ladder'. Buy a wreck for $5k, sell for $30k, by an ok boat for $30k, do up and sell for $50k etc. He's not a rich man by any means. He adds value by virtue of having genuine skills and then sells on to buy the next thing.

We were hauling 50ft of anchor chain plus the anchor straight off the bottom by hand. No powered winch or anything like that.

It was very lovely, don't get me wrong. We had a fantastic day. A pretty MSE one at the same time.