The value of shops, offices, and warehouses in the United Kingdom increased in July as the commercial sector regained trust.
According to the latest report from Investment Property Databank, capital prices for commercial property increased by 0.2 percent, marking three months of growth.
Following the Bank of England's announcement that low interest rates will be sustained unless unemployment figures increase, the firm expects continued investor interest in the commercial sector. buying property in qatar for expats
"Governor Mark Carney's latest announcement about the Bank of England's future monetary policy should continue to inspire investors in and against commercial real estate," according to Phil Tily, executive director and head of UK and Ireland, IPD. "If the United Kingdom fails to reach all of his 'targets,' interest rates and bond yields will stay low, and investors will continue to seek out good value add and income opportunities in the real estate market."
According to London-based IPD, the total return was 0.8 percent, with the three main sectors showing stability: offices returned 1.0 percent, industrial returned 1.0 percent, and retail returned 0.5 percent.
The retail sector in the United Kingdom is dealing with negative capital flows, but regional markets are improving. According to the company, stores in the South East, Midlands, and South West saw higher returns as capital value declines slowed or stopped.
Despite the property prices, rental rates for commercial property in the United Kingdom remained unchanged in June, at 0.0 percent in July, due to a drop in demand for Central London offices. The city's rental growth slowed by 70 basis points to 0.1 percent.
Marriott is selling its real estate holdings for $800 million.
Marriott International, Inc. has agreed to sell three Edition hotels for $800 million in a non-binding letter of intent.
The three hotels, which are being built in London, Miami Beach, and Manhattan, will be sold once they are finished. According to a press release from the Maryland-based firm, the London Edition will open next month, the Miami Beach Edition next summer, and the New York Edition in early 2015.
The organization made no announcement about a potential buyer. The Wall Street Journal announced last week that Marriott was near to a deal for the properties with an Abu Dhabi government fund.
The Miami Beach Edition residential units will be owned by the company until they were sold to individual buyers. The company would also keep the properties' long-term management arrangements.
The $800 million sale price is "roughly equivalent to Marriott's estimated overall acquisition and development expense," according to the firm.
In a statement, the company said that "increases in projected construction costs would not result in higher hotel sales rates."