Page 21 - Moore Blatch Business Magazine edition 2

COMMERCIAL PROPERTY

THE ‘CHEESEGRATER’
Bought by China’s CC Land for £1.15bn

THE ‘WALKIE-TALKIE’ THE ‘GHERKIN’
Bought by Hong Kong’s Lee Bought by Brazil’s Safra Group for £700mn
Kum Kee group for £1.3bn

As a result, cash once invested there is going elsewhere and L ONDON CAN T AKE IT
London’s relative affordability is proving a huge draw. Look a little deeper and the picture is different. London’s commercial
property market is sophisticated and resilient, surviving many a
THERE HAS TO BE A BUT… political storm. Going back tens if not hundreds of years, the market
Not everyone shares Mr Wong’s optimism about London’s future. is built on a steady and strong economy, plus our rule of law.
Recent business rates changes have hit the hospitality sector, with Despite a possible post-Brexit exodus, no European jurisdictions
bars, restaurants and pubs all feeling the squeeze. Brexit concerns come close to London – it would take places such as Frankfurt years
plus the weaker pound also make it harder for the sector to recruit to reach parity with us.
good European staff. Yet a weak pound also creates opportunities…
Our Asian counterparts clearly see long term value in London’s
ANOTHER CRISIS? commercial property market. We too should be confident that
In addition, in November 2017 for the first time in years interest the market’s foundations will ride out changing interest rates, a
rates rose, which will inevitably impact property. Nearly a decade weaker pound, Brexit and whatever other political dramas the
later, many recall property’s role in the global financial crisis. future may hold.
Few could have predicted how quickly the market has bounced
back, and understandably that’s raised concern. However,
we’re now in a very different situation to 2008, with the banks
far less exposed to the vagaries of commercial property.
ARCHIE SHERBROOKE
There’s also a wealth of available office space in the City of London, Partner, City of London
keeping rents unusually low. Even though we’re seeing the balance 020 3192 5625
of power shifting to tenants (which is good for business), some archie.sherbrooke@mooreblatch.com
worry about the commercial property market’s stability. London’s
commercial property is highly reliant on the financial services
sector, which may well flee abroad if Brexit talks go awry.

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