Investors considering moving funds into the commercial property market have been advised that there have been some shifts noted in how it operates, which are likely to remain in place for the short to medium term.
This is the view expressed by head of property investment Phil Clark at Kames Capital, who suggested the changes that had taken place were fundamental, resulting in big changes across the sector.
Mr Clark, who currently works as the chair of the Investment Property Forum, explained he thinks the economic uncertainty that is still being felt across the Eurozone and the rise in new regulations in place in the sector have all contributed to this shift.
Looking forward for the commercial property market, Mr Clark noted how this time last year there was a feeling of optimism about what would take place in the sector, but by six months concern was solely focused on if the Eurozone would be able to survive in its current form.
Considering the whole UK market, he highlighted there was a return of 8.1 per cent across the market over the last year and the level of transactions taking place was in line with the historically high levels of around £30 billion.
"The problems arising out of the exuberance of the last economic cycle are now giving rise to the opportunities in the next, as banks continue to deleverage their exposure to UK commercial property and more experienced investors look to buy commercial property investments outside of London and the south east," the expert added.
Recently, AEGON, the company behind Kames Capital, stated that companies should see the changes being brought in by the Retail Distribution Review should see this as being an opportunity for the industry.
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