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Manchester

Jones Lang LaSalle’s Manchester Research Seminar predicts outlook for North West Investment market


Manchester, 2nd April 2009 - Jones Lang LaSalle held the second in its programme of real estate seminars entitled Jones Lang LaSalle’s UK Research Seminar Programme 2009 in Manchester today; with speakers Jonathan Mills, head of National Investment in Manchester and Paul Guest, head of European Research at Jones Lang LaSalle, outlining the prospects for the North West Investment market and UK economy.

Drawing on the results of Jones Lang LaSalle’s Quarter 1 2009 UK real estate investor confidence sentiment survey, which canvassed the views of nearly 300 principals and lenders in the UK investment sector, Jonathan Mills, head of National Investment in Jones Lang LaSalle’s Manchester office, said the findings showed that the deterioration in confidence in the UK commercial real estate investment market has softened in the first quarter of this year.

Jones Lang LaSalle’s survey indicates that anticipated total returns over Quarter 1 2009 have improved with the share of respondents expecting ‘slightly higher’ returns increasing to 42% from 27% in Quarter 4 2008.  Nearly half of the sample expected no change in their outlook which suggests respondents feel the market is levelling off.

Jonathan continued: “This improvement in investors’ sentiment during this quarter is fundamental as, along with the tangible key economic drivers and fundamental principles of property, sentiment remains a key element to the level of exposure and therefore purchasing power investors are willing to commit to the real estate market.

“Bearing in mind current interest rates and the poor performance of other investment sectors, in our opinion long term income has reached its level however, in the more risky income profile, we believe there is potentially further movement based on a weakening occupational market, the extent of which will only become apparent when you look at individual assets.”

He added: “On a positive note for the future, we believe the market is adjusting itself to this way of thinking and potentially we will have sight of the bottom of our market during 2009.”

Paul Guest, head of European Research at Jones Lang LaSalle, concluded: "The economic outlook is one of the most challenging the commercial property market will have faced. Occupational conditions are deteriorating as defaults rise and business sales fall, while job cuts will bring second-hand space back on to the market, creating a further downdraft. 

Credit conditions are slowly levelling out and though the recovery will be a gradual one, this will create opportunities for savvy investors and occupiers able to take advantage of these conditions.”

                             
Notes to Editors:
In what will be a challenging and uncertain year for developers, occupiers and investors, the importance of up-to-the-minute, quality intelligence is paramount. Throughout the year, Jones Lang LaSalle will be holding a series of events across the UK, analysing the outlook and the risks for the principal areas of the UK property market.

At these seminars Jones Lang LaSalle will draw on the work of its industry leading research team and the market knowledge of its business practitioners, as well as inviting other participants from relevant markets. The seminars will aim to provide the most up-to-date view on current trends and themes, and equip delegates with the tools required to face a rapidly changing market. 

For further information please go to: www.joneslanglasalle.co.uk/ResearchSeminar