Rob talks about the current state and future prospects of the commercial property market, contrasting it with the residential sector discussed in previous episodes, reflecting on the market's trajectory from the post-financial crisis boom to the challenges posed by the COVID-19 pandemic, including shifts in work culture and rising mortgage rates.
KEY TAKEAWAYS
Commercial Property Market Challenges: The commercial property sector is facing significant challenges due to cultural shifts towards remote work, leading to lower occupancy rates and potential financial strain on landlords.
Impact of Rising Mortgage Rates: Many property owners who secured low mortgage rates between 2010 and 2021 may face difficulties as they refinance at much higher rates, which could lead to increased financial pressure and potential property sales.
Skepticism Towards Economic Data: There is a strong belief that the economic data being reported is misleading, with a suggestion that the UK economy is not as healthy as portrayed, which could lead to a downturn in the commercial property sector.
Opportunities Amidst Challenges: Despite the negative outlook for the commercial property market, there may be opportunities for investors to acquire properties at lower prices, especially as more buildings become available due to financial distress among owners.
BEST MOMENTS
"Commercial property is something that we have touched upon on the Property Nomads podcast as well because things aren't quite adding up."
"If you're a landlord and your tenancy is a bit mass ominous, more or less 50-50, and your mortgage rate is gonna double or treble, that's more going out of your back pocket."
"I think that the commercial property sector is at some point going to collapse."
"Although people will say, you know, the markets are in recovery, I disagree with that sentiment. I think it's going to go the other way."
"If there are potentially more commercial units that need to be filled... this provides opportunities for buyers."
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