The slump in the commercial property market will reach new lows this year with £22.7bn of property debt scheduled to be refinanced, new research claims.

Property companies will be forced to sell assets in order to manage their debts – even if they are forced to sell at a loss, warns property consultants King Sturge.

The flood of distressed properties on to the market could drive capital values even lower.

The value of commercial property has fallen 31.5% since its 2007 peak, figures from property analyst IPD show, but King Sturge predicts secondary properties could eventually drop by over 50% as supply increases but demand falls because of business failures.

Daily Telegraph