Commercial property investment activity at 150% year high

October and November has seen a huge spike in activity in the UK commercial property market, with a 150 per cent increase in transaction due diligence led surveys being commissioned.

Leading independent building and property consultancy, Tuffin Ferraby Taylor LLP, who act as surveyors for the majority of the UK’s biggest commercial property owners and investors, has reported an influx of instructions for pre-acquisition and vendor surveys.

The two months of October and November, saw a record of, on average, 25 transaction due diligence survey instructions, compared to as low as ten per month for the rest of 2009. Included in these have been vendor surveys for Tesco, a quality assessment survey for the purchase of the old NatWest headquarters at 27 Poultry and a pre-acquisition survey for the purchase of the House of Fraser store in Cardiff, the largest department store in the city.

Tuffin Ferraby Taylor managing partner, Alan Pemberton, says: “The influx of due diligence surveys we are currently managing is a clear sign that changes are occurring in the market. During the busiest years we were averaging 31 vendor or pre-acquisition surveys a month, so to reach 25 now is significant. December is looking like an even busier time for the market as we have already taken instructions for over 60 commercial buildings for investment, many of which are based throughout the heart of London.

“The level of diligence being displayed by buyers has increased, with investors less willing to take a risk based on perceived market growth. The link between property condition and value has risen in importance. In light of this, in-depth and judicious property surveys have reasserted themselves as critical in UK commercial property transactions.”

Tuffin Ferraby Taylor was founded by former RICS president David Tuffin in 1973 and provides independent advice to major landlords and tenants, including, PRUPIM, ING Real Estate, Tesco, SEGRO, Aviva and Threadneedle, among others.

source : Tuffin Ferraby Taylor