questions about commercial property
burning the by JONATHAN HUGHES, PARTNER, HEAD OF OGIER’S LOCAL LEGAL SERVICES AND CO-HEAD OF OGIER’S PROPERTY
Jonathan asks asks Simon Buckley, Managing Director for Buckley & Co those burning questions we all have about the world of commercial property…
Jonathan Hughes (JH) - How is the investment market looking in Jersey and what trends are you seeing?
Simon Buckley (SB) - For the last five years there has been, with a few exceptions, little in the way of real transactional activity in the market. However, the current market is now in its embryonic state of recovery, although we are unlikely to see any major improvement in Jersey until the UK leads us back to growth. Whilst transactions in the market have been few and far between, we are beginning to see green shoots with a number of quality prime commercial properties coming to the market.
These properties are across a broad range of values, from £5m- 30m with smaller lot sizes likely to
find buyers more quickly whilst the larger lot size will take more time in what is a more limited market. The £5m-£10m is the most active with those in the £20m+ taking some interest but obviously will take longer to conclude.
(JH) - What yields are being achieved?
(SB) - Yields are certainly 100 basis points (bps) above that of the best position of the market from recent years. This seems to be the 'norm' for now but we expect
to see an improvement as the market recovers and the economy grows.
(JH) - How are occupancy rates for office and retail premises?
(SB) - Occupancy rates for retail, excluding the tertiary areas, are pretty much at 95-100% capacity in prime areas and only slightly
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