INDUSTRY NEWS

Commercial Property set for Bolton boom

Commercial property could be poised for a revival says president of investment at Fidelity International, Anthony Bolton.

The financier is confident the gap between interest rates and yields is wide enough for investors to face the risk of tenants going out of business.

He told the Times that because of this investors should be tempted back into prime office blocks and other commercial property.

However, Mr Bolton went on to warn a deflationary environment, such as we are experiencing is bad for commercial property and predicted further pressures on rental income.

Sales by auction have also fallen. Duncan Moir auctioneer at Allsop said he could not see any recovery in the short term.

"I don’t see the catalogues increasing in size much next year. If the banks increase foreclosures then we will, but it is hard to be sure," he told Property Week.
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