The value of the UK's commercial property stock reached an all-time high of £871bn in 2015, representing 10% of the UK's net wealth, a new report from the Property Industry Alliance (PIA) has revealed. This is an 11% increase on the 2014 total value.
However, following the UK's decision to leave the EU and a long summer break, the outlook for the commercial property market over the next 3-6 months has become unsettled, as a three-tier commercial property market has emerged, according to Birmingham-based real estate asset management company, Blue Marble Asset Management.
In its Autumn Edition of the Blue Marble Barometer, the quarterly forecast of the UK commercial property investment market, Blue Marble says that there are great differences in the reactions of Institutions, Property Companies and Private Investors to the Brexit process, with little evidence of post-Brexit price reductions, albeit in a quiet market.
Blue Marble chief executive Tim Matthews says: "Buoyed by increased consumer confidence, post-Brexit activity by private investors generally appears to be undiminished. Commercial and residential auctions continue to achieve very high sales rates and smaller lot sizes - £2m and below - typically sell very well with competing interest in good quality product.