We have all read about how the rental market is booming and have seen the critically low vacancy rates across London and more and more people are now considering buying over renting for their commercial office space. 

The cost of money is at a low of 25 years at only 4%, this is cause by the flood of lenders to the market. Over 130 lenders have come to the market post the recession putting borrowers in a very good position. 

In addition, market research shows that the cost of debt is lower than property income which means low risk for both lenders and investors. This is expected to continue based on the current strength in the commercial market. Considering many investment deals in London are pre-let makes then seen as safe investments. This is one of the reasons the London commercial market is be seen by overseas investors as a safe place to buy.

Teresa Beatty a commercial surveyor from Morgan Pryce said “The cost of borrowing is effected by the low interest rates and for the foreseeable future they are seen to stay this way.” We believe the low cost of borrowing will continue to bring more investors into the market.

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.