Commercial property 'close to bottom'

The commercial property market might be stabilising after months of decline, the head of Hammerson has said.

According to John Richards, rent delinquencies and mortgage defaults would stay low over the next few months.

In an interview with Bloomberg, the chief executive said that he was also planning to restart Leeds development work in future in order to take advantage of the eventual market recovery.

’We will see values stabilize,’ Mr Richards commented.

The chief executive also told the news agency that Hammerson was still planning to press ahead with the Eastgate Quarters development project in Leeds.

’Over time we will resuscitate a development business … in running a business you have to look forward,’ he added.

Commercial property has been one of the sectors hit hardest by the global credit crunch, with prices declining by 20 per cent over the past year.

The performance of the commercial property market directly impacts on many private banking clients - some of whom hold offices and retail space investments in their self-invested personal pensions.ADNFCR-2318-ID-19231778-ADNFCR