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In Fact, 40% Of The Commerical Property Market In The Uk Is Invested From ...

In fact, 40% of the commerical property market in the UK is invested from foreign sources, a key indication of market attractiveness (HotProperty.co.uk, 2007). The preceding strengths in investment, lending, historical returns, and market demand have impacted central city as well as the development of business parks to keep pace.
However, the preceding trend is slowing, and continental Europe is gaining ground. The forecast for 2007 indicates that the European commerical property markets on the contintent should start to generate annual returns that are higher than the UK over the next five years (EasierProperty, 2006). The foregoing is a result of improved real estate market assessability, increased transparency as well as harmonisation regarding legal and reporting measurements (EasierProperty, 2006). This forecast is suppported by the Financial Times (2007) that reported the commerical property market as ‘stretched', citing that although lending by banking insitutions is still strong, overall average yields from rental income has fallen below the five-year swap rates. Jones Lang LaSalle (2007) concurs as well, indicating that yield compression has dominated investment performance over the past five years.
Within the preceding is the reason for the increase in the performance of the continental European commerical property markets as represented by improved real estate market assessability, increased transparency as well as harmonisation regarding legal and reporting measurements. The foregoing has been aided by advancements in technology whereby the planning of competiting regions, and countries are available to developers and other planning commisssions to utilize in their own studies and considerations. Technology also aids in environmental impact studies concerning the development of new office parks with respect to biodiversity, needed support and utility requirements, and the impacts of added commercial emission outputs and energy needs (Ramsar Convention Secretariat, 2007). The heightened level of the importance of office space in not only the attraction of investment funds, but in providing space and facilities for business represents a key economic variable for countries. Having a good cross section of rental pricing represents the ability for business to expand in various classifications and industry sectors. Large sized businesses are classified as those having in excess of 250 employees, and a turnover that exceeds €50 million (European Commission, 2007). Medium sized enterprises are classified as those having between 50 and 249 employees with a turnover of up to €10 million, with small sized businesses representing 10 to 49 employees and a turnover of between €2 and €10 million (European Commission, 2007). The preceding is important in that small and medium sized businesses account for 99.8% of all enterprises in the United Kingdom, representing 54.1% of all employment, and 50.


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