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In Understanding And Implementing The Foregoing, An Understanding Of Where ...


In understanding and implementing the foregoing, an understanding of where the UK office market has been will provide a clearer perspective on how it arrived at its present state, and the prospects for understanding where it is going in light of the preceding background summary on urban planning, and importance of integrating the understandings of the Convention on Biological Diversity. The preceding shall be accomplished through a review of various literature that focuses on the evolution of the United Kingdom office market, playing particular attention to business parks, and their resultant impact in consideration of the Convention on Biological Diversity.

Chapter 2 Literature Review
The commercial property market in the United Kingdom represents the most expensive in the world (Cheshire and Hilber, 2007), which is a double edged sword. On the positive side it indicates the strength in global opinion on the vibrancy of the UK economy as well as investment security, on the other, it is a higher cost of doing business that must be factored into business plans, and is an inhibitor for smaller and mid range firms to bear in term of location and operation costs. In 2000, the influx of foreign capital in the UK commercial property market hit a then record 11 billion USD that represented an increase of 100% over the prior year (International Real Estate Digest, 2001). And while the pace of that growth as well as the attractiveness of the market has slowed, it still represents one of the UK's best investment vehicles as a result of it historically outpacing the returns of publicly traded shares, and government bonds (International Real Estate Digest, 2001). Some of the key factors that contribute to the attractiveness of this sector are the fact that there is lower risk from investment in that in general the tenants bear the property insurance costs as well as repairs to internal areas (International Real Estate Digest, 2001). In addition, the leases in the United Kingdom are on average of longer duration than those in continental Europe (International Real Estate Digest, 2001).
The preceding view and assessment of the stability, and strength of the UK commercial property market is supported by large financial institutions such as pension and insurance funds that in 2004 had 8% of their assets, amounting to approximately £85 billion invested in commerical property (Lewis, 2005). The preceding translates into an estimated 15% of the UK commerical property market being held in this manner (Lewis, 2005). The strength, in addition to demand and foreign investment, has been the lower risk and returns that enable financial instutions to actively engage in lending.


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