Market Movers Blog – Tracking Commercial Property Sales Post Lockdown
In an effort to get an idea of how the Commercial Property market is performing after lockdown, Propertylocator.ie has selected a mix of our Featured Commercial properties that have been advertised For Sale over the past 3 months.
We have monitored and tracked the sales process with the relevant Agents and will continue to monitor progress over the coming months. The Properties selected have a combined Value of close to €30 million and cover the following price levels;
1) Below €1 million
2) Between €1 and 5 million
3) Between €5 and 10 million
4) Above €10 million
In the first study of its kind, we are beginning to build a picture of activity levels and market appetite for property as we enter the second half of the year.In summary, there has been active bidding and sales agreed on approximately 50% of the properties selected with little to no activity on the remaining properties.
The next 3 mths will be interesting to see how deals progress and if Agents can conclude deals on the sale agreed properties and generate some bids on the less active properties. A slow return to activity in Q3 would be a positive signal for many vendors who have held back on bringing properties to the market over the summer. A further more detailed update will follow during our next Market Mover Blog in August.
As expected, many occupational and investment markets will face challenges and volatility in the short term. Given recent announcements from the likes of Twitter, Ulster Bank and a host other International companies, the way people work and shop will continue to change.
It is predicted that Retail and Shopping centres will suffer most with reducing footfall and shift to online shopping. Online sales pre-Covid made up about 19% of the total retail spend and this figure is now reported to have more than doubled in recent months.
Prime modern Office and Retail Warehouse/Logistic parks are expected to do better on the back of record low vacancy rates, reduced delivery of space onto market and increase in demand in online activity. Digital and advanced technology systems will continue to play an increasingly more important role in the way the property market operates.
In a recent article for Property Week, Niall Gaffney CEO of IPUT expects grade A Office space in CBD locations to fare better especially those convenient to areas that are well designed and conducive to vibrant social interaction. In recent weeks some Agents are also reporting an increase in enquiries for Own door office accommodation.
The drive for more sustainable and environmental friendly buildings will accelerate and strengthen, with increasing emphasis on the roles buildings play on the environment and the wellbeing of people who work and live in these buildings.
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