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Is the real estate market for offices in recession? How could this affect business rates?

Peter Foley is our resident guru here at CPA, and has been passionately following the shifting world of business rates for many years. With a keen political insight, Peter’s writing reveals how policy change is key to understanding your business rates further, and how this could translate into substantial savings. In his weekly column, Peter also outlines a desired path forward, with changes we’d like to see implemented for a fairer system on the nation's business rates.

In the ever-changing landscape of the London property market, it seems we are now facing a "rental recession" for office spaces. Renowned property commentator, Mike Prew, suggests that despite the seemingly affordable prices of London property shares, they may not actually be a good value investment.

Prew points to the decline in shares of major property companies such as British Land, Land Securities, Derwent London, and Great Portland Estates as evidence of this rental recession. To make matters worse, the vacancy rate in the City and Canary Wharf has already exceeded the tipping point of 8%, raising concerns among market analysts who draw parallels to the burst of the dotcom bubble in the early Noughties.

Adding fuel to the fire, the continuing trend of working from home has resulted in up to 20% of office spaces being considered surplus to requirements. Commercial Property Advisors (CPA), a leading business rates consultancy, highlights the opportunity for businesses to save thousands by challenging inflated rateable valuations and seeking a more secure future for both landlords and tenants.

CPA's team of RICS-regulated surveyors, armed with comprehensive data on comparable sites, provide free reports to the Valuation Office Agency (VOA) and only charge a commission upon successfully achieving financial outcomes for their clients.

Given the current flux in the office sector and the need for stability, now is the perfect time to reevaluate the true value of properties. If you require help or advice, reach out to CPA without any obligation. Together, we can navigate these challenging times and find solutions that work for your business.

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