Commercial property prices increased across all sectors in 2016

Commercial property prices increased across all sectors in 2016
2016 was a complex series of twists and turns on the economic front and saw operators having to adapt to a raft of new legislation

The latest report by specialist business property adviser, Christie & Co has highlighted that during 2016, average business property prices once again increased across all sectors.

In the report, Christie & Co indentified one of 2016’s main trends to be an increase in interest in UK markets from overseas buyers – particularly those from China and wider parts of Asia – notably in the care, hotels, childcare and pubs sectors. This is partially due to the outcome of the referendum, which led exchange rates to improve for foreign purchasers.

However, 90% of UK business property sales are still to buyers within the same geographic area, this has meant that Brexit has had little impact on domestic transactions thus far. However it remains to be seen what the longer term effect will be on the wider market ahead of the triggering of Article 50.

Despite this, average prices across all the sectors in which Christie & Co specialises increased further in 2016. These are as follows:

Pharmacy: + 12.0%
Dental: + 14.9%
Care: + 5.0%
Childcare: + 9.7%
Retail: + 8.8%
Pubs: + 4.4%
Restaurants: +14.1%
Hotels: + 6.0%


Chris Day, Global Managing Director at Christie & Co comments, “Whilst 2016 was a tumultuous year in our markets we have seen resilience in the face of political and economic uncertainty. However, our overall weighted price movement across all our sectors was +8.0% in 2016, led by leasehold and ‘goodwill’ sectors such as dental, pharmacy and restaurants. As we move into 2017, although there is still some uncertainty, all our lead indicators suggest that the market is remarkably robust and we anticipate another year of solid price growth.”

David Rugg, Chairman at Christie & Co comments, “2016 was a complex series of twists and turns on the economic front and saw operators having to adapt to a raft of new legislation, all of which have taken their toll on businesses across the UK. However, we are pleased to say that the sectors in which Christie & Co deal have longevity, and will remain a focus for operators and investors for the foreseeable future. We will continue to assist with all elements in the lifecycle of business property ownership and operation including funding and business cover through Christie & Co’s sister companies including Christie Finance and Christie Insurance and advice through our Consultancy services.”

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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