Following the previous years of economic downturn, it is evident that the opinions of some investors are already final. Recent articles have claimed that 2012 is set to be yet another tough year for UK commercial real estate.
The safety factors of the prime core properties are evidently the dominating option, whilst investors are somewhat overseeing the potential rewards that a secondary asset could deliver.
According to a recent article, Forty-five per cent of medium-to-large businesses in London stated that they would now be less likely to consider non-prime investment, with only 20% claiming that they would bemore likely to consider compared to 12 months ago.
Due to the previous years of preference for prime properties, the secondary asset alternative has experienced a dampening in value due to the increased risk of maintaining rental income.
Fraser Williams of Barclay Fox comments "The current lack of demand for secondary property presents an investment opportunity for the right assets"