CB Richard Ellis is to wipe up to £10bn off the value of Britain’s commercial property market when it carries out its quarterly valuations at the end of September. The Sunday Telegraph
The world’s biggest property agent values nearly half the investment-grade commercial real estate in the UK, and has told select clients that it is to mark down their property by up to 10% as a result of a downturn in the market.
‘Clearly the underlying market has moved and the valuers are trying to reflect that,’ said a source. ‘What is difficult is knowing how prices have moved as there are very few deals being done at the moment.’
CBRE intends to increase yields on prime assets from 10 to 25 basis points, while secondary property will be hit by a shift of 50 basis points. The change in income yields corresponds to a fall in capital values of between 2% and nearly 10%.
Extrapolated over the entire market, this would wipe around £10bn off the Investment Property Databank index.