Rate cuts by the Bank of England and other central banks on Wednesday have improved prospects somewhat for the commercial property market, the UK office of global commercial real estate services firm CB Richard Ellis said in a statement Thursday.
Rate cuts by the Bank of England and other central banks on Wednesday have improved prospects somewhat for the commercial property market, the UK office of global commercial real estate services firm CB Richard Ellis said in a statement Thursday.
‘At last central banks have acted together in response to the global financial crisis. Coming on top of the UK government’s rescue plan for British banks announced this morning, this is a crucial move towards arresting the UK’s slide into serious recession,’ commented Peter Damesick, head of UK research at CB Richard Ellis. ‘A downturn is already in train but its severity will be reduced the quicker financial systems stabilise and the credit markets unfreeze.
‘For the commercial property market, today’s developments offer some alleviation of the threat of a collapse in occupational demand in an economy stifled by paralysis in the credit markets. The credit crunch has already taken a heavy toll on commercial property values, which are down by 25% since mid-2007. The start of what will hopefully be a series of interest rate cuts offers a somewhat better prospect that values will be able to find a sustainable floor in the coming year,’ said Damesick.
