ARP had the pleasure of attending the RICS Commercial Property day last week in London. It was interesting to hear from various speakers and also discuss the current market with various investors and firms.
In last months news we titled the document ‘uncertainty but opportunity’ and the same can definitely be said for the commercial market. ARP’s director worked for one of the world’s largest commercial property companies for many years and also through the last recession. During this period the most commonly used word was ‘’challenging’, mainly used, and said, with a suck of air through pursed lips and a slight shake of the head from the boss when approaching pay and bonus review time…
Well the popular word of choice now is ‘uncertainty’. There is uncertainty everywhere, in most markets and across the cyclical, political and economic spectrum. This was also the view of the RICS who stated the following;
Uncertainty has been a word most closely associated with the commercial property market over the last couple of years. With a new government and Brexit talks ongoing – uncertainty will continue to plague the market. Despite this, it hasn’t stopped the commercial property market from continuing to adapt and survive during this time of continued change.
The RICS Commercial Property Conference offers exclusive insights into the key industry developments, to ensure you understand where the market is in the current cycle, are aware of the latest investor and occupier demands, and can take advantage of future opportunities.
It was surprising to hear that most investors felt quite relaxed about Brexit and the general view is that the UK, and London in particular, will always be a good place to invest. However, the real concern comes from the political side of things and the implication of a Left Labour, Corbyn lead government getting in power.
ARP also learned a new term from one of the speakers when talking about alternative and niche investments. ‘Multifamily’ investment. I sat there for a while trying to work out what ‘multifamily’ is and in the end had to ask. Turns out multifamily is really an American way of saying several rented units in the same development. So there you go. It genuinely was an interesting and educational day.