The Royal Institution of Chartered Surveyors published its Commercial Property Forecast this week. It predicts that in general, the price of commercial property will have fallen by 50% from its 2007 peak by the end of 2009 with the office market falling by as much as 60%. Whilst this may be bad news for investors in commercial real estate, commercial tenants will be cheered by RICS' view that rents will continue to fall throughout 2009 and 2010.
Breaking the market down by sector, the office market is predicted to fare worst, followed by retail with the industrial sector holding up best of all.
The falling market means you should revalue your property portfolio if you think you may need to refinance in the near future.
For tenants, falling rents means it might be time to renegotiate your lease
Steven Petty, Commercial Property Lawyer
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