Could Student Accommodation be the Answer for Commercial Property Investors?

<h1>Could Student Accommodation be the Answer for Commercial Property Investors?</h1>Author: <a title="Matt Grimes PC" href="http://www.articlesbase.com/authors/matt-grimes-pc/83802.htm">Matt Grimes PC</a> 
The global credit crisis continues to affect investment into the commercial properties sector. Commercial property returns over the last twelve month period are looking to be close to the worst twelve month real return on record which occurred in 1974. RICS are predicting that over the next two years things are going to get even worse with the decline in capital values far outstripping the slumps of the 70's and 90's. Investors are pulling out of commercial property fast and in doing so are leaving a very much tenant driven market behind. These are unstable economic times and tenants are looking to landlords to help them out with their commercial property lease agreements. As a result landlords are offering better value inducements, incentives, lettings agreements and rents than ever before in order to ensure their buildings do not become empty. Despite the huge downturn in commercial property investment there are still some areas within the commercial real estate sector that are deemed viable investments. Student accommodation investors are still hoping for a successful new year and are counting on the fact that in times of recession many people put off entering an uninviting job market that is often only looking for experienced employees and look instead to improve their long-term professional prospects through training, qualifications and academic achievement. This combined with the fact that there is a shortfall in modern halls of residence and you get a potentially great investment formula in spite of the recession. Many commercial buildings are emptying fast, already standing vacant or are nowhere near full occupancy however, this formula is likely to mean that any commercial property investment into student accommodation is likely to see almost full occupancy even if some of the students drop out, which inevitably happens every year with a small percentage. Even though many commercial property investors are looking to decrease their commercial properties portfolios in the long-run the UK commercial property market is beginning to be hailed as the best value for investment in the World, according to the annual strategy for review by global property fund manager La Salle Investment Management. The UK has fallen fastest and hardest across all of the global property markets and is therefore now looking like one of the most appealing areas for long-term investment. This combined with the fact that many universities simply do not have the available funds for revamping ageing halls means that student accommodation could be a great commercial property investment that is likely to remain buoyant throughout the recession.About the Author: Matt Grimes is a <a href="http://www.pearl-coutts.co.uk/">commercial property agent in London</a> and has considerable experience in the industry after working in the commercial property sector for over twenty years. He has written numerous articles regarding the commercial property area and is seen as an authoritative figure in the industryArticle Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/real-estate-articles/could-student-accommodation-be-the-answer-for-commercial-property-investors-701249.html" title="Could Student Accommodation be the Answer for Commercial Property Investors?">Could Student Accommodation be the Answer for Commercial Property Investors?</a>

The global credit crisis continues to affect investment into the commercial properties sector. Commercial property returns over the last twelve month period are looking to be close to the worst twelve month real return on record which occurred in 1974. RICS are predicting that over the next two years things are going to get even worse with the decline in capital values far outstripping the slumps of the 70's and 90's.

Investors are pulling out of commercial property fast and in doing so are leaving a very much tenant driven market behind. These are unstable economic times and tenants are looking to landlords to help them out with their commercial property lease agreements. As a result landlords are offering better value inducements, incentives, lettings agreements and rents than ever before in order to ensure their buildings do not become empty.

Despite the huge downturn in commercial property investment there are still some areas within the commercial real estate sector that are deemed viable investments. Student accommodation investors are still hoping for a successful new year and are counting on the fact that in times of recession many people put off entering an uninviting job market that is often only looking for experienced employees and look instead to improve their long-term professional prospects through training, qualifications and academic achievement. This combined with the fact that there is a shortfall in modern halls of residence and you get a potentially great investment formula in spite of the recession. Many commercial buildings are emptying fast, already standing vacant or are nowhere near full occupancy however, this formula is likely to mean that any commercial property investment into student accommodation is likely to see almost full occupancy even if some of the students drop out, which inevitably happens every year with a small percentage.

Even though many commercial property investors are looking to decrease their commercial properties portfolios in the long-run the UK commercial property market is beginning to be hailed as the best value for investment in the World, according to the annual strategy for review by global property fund manager La Salle Investment Management. The UK has fallen fastest and hardest across all of the global property markets and is therefore now looking like one of the most appealing areas for long-term investment. This combined with the fact that many universities simply do not have the available funds for revamping ageing halls means that student accommodation could be a great commercial property investment that is likely to remain buoyant throughout the recession.

Matt Grimes is a commercial property agent in London and has considerable experience in the industry after working in the commercial property sector for over twenty years. He has written numerous articles regarding the commercial property area and is seen as an authoritative figure in the industry

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/real-estate-articles/could-student-accommodation-be-the-answer-for-commercial-property-investors-701249.html

Article Tags: Commercial Property Uk, Commercial Property London, Comemrcial Properties London

Related Articles
Related Q&A

Latest Real Estate Articles
More from Matt Grimes PC

Why Investing In Playa del Carmen Real Estate is a Wise Decision

By: Tom Budniak | 17/12/2009
Investing and making your money grow can be a tricky affair. After all, it's a question of your life savings and decisions regarding these cannot be taken on a spur of moment...

Handy Hints for Your Kitchen Safety

By: Maria | 17/12/2009
The kitchen is that one area in your house that smells of homey, delicious aroma from the foods that are prepared and cook. It is the place where household members gather and feast on the hearty spread that is prepared before them. However, while everything appears dandy in the kitchen, it is also a place where things could go wrong in an instant. Homeowners should be cautious enough about handling kitchen tools and should be prepared for sudden kitchen hazards that might occur.

Homeowner’s Insurance – Do You Have Enough?

By: Maria | 17/12/2009
Whenever a year comes to a close, it is a good time as any to assess your homeowner’s insurance and ensure that you have enough coverage for the following year. Perhaps, you have taken a homeowner’s policy as a practical step in applying for a mortgage loan, flung the policy papers into your office desk, and never thought about how much coverage you have.

Reasons to Have a Home Inspection

By: Jason Kay | 17/12/2009
Anytime that you are considering buying a home you should get a home inspection done. Home inspectors are people that are trained to look for all the little things that can go wrong along with the major things that can go wrong that the average person just isn't going to...

Design Your Home for Retirement

By: White Alex | 17/12/2009
The middle-aged population of today has grander dreams and plans for retirement than their previous generations. They are used to larger homes and a vast majority does not intend to scale down even after retirement.

Choosing the best Makati real estate

By: AndyFOX | 17/12/2009
Makati is a great place to stay in given that it is the Philippine’s business center. But, finding the perfect place for you can sometimes be very difficult. In my case it was difficult.

Is There a Slump in Gurgaon Property Market Now?

By: joseph | 17/12/2009
There is a little slump in the Gurgaon Properties anyhow. Though the recession and its fall outs are fast receding form the market, there is not any considerable appreciation in the Gurgaon property prices. In fact, when we compare the present price with the price before the recession vis-à-vis the escalating inflation, a little slump still prevails in the market.

Important information about foreclosures for first time buyers

By: Anirban Bhattacharya | 17/12/2009
Given the profitable prospects you may experience if you buy foreclosure homes, there is a natural rush across first time home buyers as well as veteran realtors to grab the latest copy of foreclosure home listings.

London commercial property market in recovery

By: Matt Grimes PC | 10/06/2009 | Real Estate
Confidence is finally beginning to return to the UK commercial property market with signs indicating that the UK economy is now past the worst of the recession and moving nearer to genuine growth.

Commercial property rents slashed by almost 30%

By: Matt Grimes PC | 20/05/2009 | Real Estate
UK rental values are now at a sixteen year low after commercial property rents declined once again last month. Demand for commercial property is at an all time slump reflecting the sheer extent of the different industries affected by the recession.

UK commercial property predictions remain volatile

By: Matt Grimes PC | 23/04/2009 | Real Estate
Expert commercial property predictions remain extremely mixed. It appears that the long-term effects of the credit crunch have left even the commercial property specialists confused.

Credit crunch commercial property successes

By: Matt Grimes PC | 26/03/2009 | Real Estate
The UK recession isn't easing. Unemployment has officially overshot the two million mark, redundancies have reached a record high and the value of the pound is plummeting fast. Despite these gloomy statistics some industries are literally thriving as a direct result of the adverse economic conditions.