Whilst across the pond the distressed commercial property market continues to cast a troubling shadow over the US economy, our own commercial property worries seem to be abating.
In fact, analysts have now stated that UK is in the best position for recovery, compared to most of Europe and the States.
Recent figures from the Investment Property Databank have shown that although commercial property values have plummeted by 44% since the peak of the market in June 2007, prices decreased by just 1.6% in May 2009, making the smallest drop in the last year.
John Richards, the chief executive of major property company Hammerson, has also confirmed that the decline of rental rates is easing and that values will soon stabilise.
However, the situation remains grim in the US, where the severe shortage of credit is pushing up the rate of property defaults. The number of commercial properties in default, foreclosure or bankruptcy is now valued at over $108 billion – making it almost double the amount at the start of the year.
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