Optimism over commercial property: Kames

Phil Clark said the market started 2011 with signs of renewed optimism but were hit by the eurozone troubles in the middle of the year.

He said: “However the problems arising out of the exuberance of the last economic cycle are now giving rise to the opportunities in the next as banks continue to deleverage their exposure to UK commercial property and more experienced investors look to buy commercial property investments outside of London and the southeast.

“Institutional investors are starting to see the compelling opportunity to take the place of banks in lending to good quality properties and experienced property investors.

“There are also substantial opportunities to secure attractive income returns, often let on index-linked long leases, from ‘alternative’ property sectors such as sale and leasebacks, ground rents, healthcare, ground rents, student accommodation to name a few.”

Ian McDonald, director of Edinburgh-based IME property group, said: “It is a new world with new rules and a different way of doing business. The market has turned, but there has got to be some optimism.”