Private wealth management firms see commercial property demand sink

Private wealth management firms saw demand for business property fall in recent months, as a RICS Commercial Market Survey revealed the sector retreated for the second consecutive quarter in the three months to September 30th.

Companies involved in private wealth management may find clients are losing trade as a result of the relatively weak sector, with previously high-earning properties such as office blocks at risk of poor demand due to ongoing economic difficulties.

Surveyors predicted lower uptake and increased supply for the end of the year, with 16 per cent more expecting rents to fall - rather than rise - in the final quarter.

Those with private wealth invested in London real estate could find their assets are cushioned from falls in other parts of the country, as forecasts for office rent in central London stabilised after rising during the second quarter of the year.

Hugh Best, head of investment management at London Central Portfolio, recently noted "quality" properties "[do] and always will command a premium, suggesting commercial holdings in areas such as Kensington and Westminster may be best placed to deal with the aftermath of recession.  ADNFCR-2318-ID-800210983-ADNFCR