They say that every cloud has a silver lining. In the final quarter of last year the economy contracted by 0.3%. The services sector shrank. Consumer demand remains depressed as wages lag behind prices.
So what's that about good news? Well I was interested to note that British Land (BL) has posted strong growth in its recent Q3 management statement. BL's occupancy rate stood at 97%. This is important as Landlords do not want empty, unproductive, rates attracting property. Remember!
BL's Chief Executive, Chris Grigg, states that 'the business continues to perform well in markets which remain tough overall. We've continued to see good demand for our properties, which means our occupancy remains high and our developments are now significantly pre-let well ahead of completion. While we remain cautious about the near-term environment, we are confident that British Land is not only defensive in today's challenging markets but also well positioned to deliver future growth from existing and new investments.'
So no horsemen of the apocolypse yet. Let's hope that BL's bullish confidence can be maintained in the face of continuing economic uncertainty. However, for the smaller commercial Landlord the nightmare of business and empty property rates remains. Until and unless these problems, are resolved in a future budget (wishful thinking), some Landlords will see that silver cloud (and crucially that important pot of gold) sooner than others.
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