I reported a few days ago that Clinton Cards was facing being placed into administration. Well the retailer’s fate was just sealed and the company is now officially in the hands of Zolfo Cooper. What does this now mean to those commercial property owners with shops occupied by Clinton Cards and Birthdays?

If a buyer is found, then they will surely decide to close down a large number of Clinton’s non-performing stores. That doesn’t mean that those people with properties that Clintons’ wish to stay in will be unaffected. Once the new owners decide which stores should remain, they will contact the store owners and seek to reduce the rent. Faced with owning a vacant property, which in this market could take over a year to re-let, and the prospect of having to pay empty rates, in addition to continuing with interest payments on loans, most landlords will have no choice other than to agree to Clinton’s demands. However, those people who are told that Clintons’ no longer wish to trade from their units face even bigger problems. Their income will disappear over-night and they will be left owning a vacant retail property which they will have to re-let.

The end result of either of the above scenarios will be that all the properties occupied by Clintons’ just before the administration will fall in value leaving landlords out-of-pocket and some facing bankruptcy. In a large percentage of cases, where the owners have loans, the lenders will be concerned about their security and ask for the properties to be re-valued. When it is seen that the properties have fallen in value, the lenders will demand that the owners reduce their loans to fall into line with the loan documentation and banking covenants which many will be unable to do. This will then result in a wave of repossessions and other insolvency proceedings. As an example, assume someone bought a property 5 years ago for £500,000 let to Clintons’ at a rent of £35,000 per annum and took a loan of £400,000 or 80% of purchase price. If Clintons’ stay in this unit, but reduce their rent to say £30,000 per annum, then its value could fall to say £350,000.  The bank will then ask the owner for an additional £120,000 to reduce the loan from £400,000 to £280,000, which is 80% of £350,000, which means the owner will now have £220,000 of equity in this property. However, in this example, if Clintons’ decide to vacant this unit, it could very well be worth only £250,000 which means the owner would now need to find an additional £200,000. This would not be possible for most people who own secondary retail shops and who are also facing other financial difficulties.

I think as a result of this we will see a large number of bank repossessions, more vacant retail shops on our high streets, a fall in the value of these and other shops and less confidence in the retail sector in general.

Not since the demise of Woolworths has the UK seen a problem of this magnitude for the retail industry and commercial property market.

Shop buyers are continuing to tread with caution when buying retail property as company failures in the UK continue. The retail industry is waiting to see if another one of its most recognized names, Clintons Cards, is to be placed into administration.

Clinton Cards,  which has 628 Clintons and 139 Birthdays stores in the UK, faces an unknown future as a subsidiary of its largest supplier, American Greetings Corporation, could pull the plug on the struggling high street giant.

If this does happen, and the administrators/new owners (if a buyer can be found) decide to reduce the number of units which Clintons trade from, then our high streets, which many have said could not get any worse, will suffer from increased vacancy rates and falling values.

Shops in Stanmore do not currently seem to be trading as well as they have been over the years which I am sure is simply a sign of the times.

I used to own a fair bit of property in Stanmore and therefore know the market there like the back of my hand. It has always been a good local town with a loyal customer base but shops in Stanmore seem to be losing business to shopping centres such as The Harlequin and Brent Cross and nearby retail parks such as Watford and Borehamwood.

Those who own shops in Stanmore must be feeling the pinch. Consumer spending is at an all-time low caused by several factors including increased taxes, rising unemployment and inflation. As long as these problems persists, and shops in Stanmore continue to struggle, vacancy rates will increase, commercial property values will decline and demand will fall.

If you own shops in Stanmore, and are thinking of selling, call us today.

Shops let to Coral are a safe investment in this day and age as long as the occupational leases have more than 5 years to run and Coral have every intention of staying put.

Sell My Commercial Property have bought shops let to Coral Bookmakers throughout the UK and are on the hunt for more.  As the bookmaking industry is still doing well, since having a flutter, even a small one, seems to take peoples’ minds off these difficult economic times, demand for commercial property, especially shops let to Coral and other bookmakers, is still strong. That isn’t to say those selling shops let to Coral, William Hill, Tote, Ladbrokes etc can name their price but those selling these types of properties stand a better than average chance of selling them and achieving fairly good prices.

Therefore, if you own shops let to Coral, or for that matter any other bookmaker, and you are looking to sell, why not contact us so that we can make you an offer.

If you own a commercial property in Harrow, whether it be a shop, office or industrial unit, or for that matter a flat or house, and are looking to sell, then we at Sell My Commercial Property would be pleased to hear from you.

Over the years, we have bought a great deal of commercial property in Harrow, and the immediate surrounding areas, and so know the market well. Whilst others may at first say that they are interested, in reality they will almost certainly bow out of the running as their knowledge of commercial property in Harrow may be non-existent.

Therefore, those considering selling commercial property in Harrow may want to call a company who are experts, are serious about buying, have the ability to buy, are able to make a quick offer and able to complete the purchase fast. We are that company.

Although as a rule I never include links to other websites, as all my views and opinions are based on detailed research and my own personal experiences, I have to draw your attention to the BBC business news link below.

http://www.bbc.co.uk/news/business-13977255

As you will see, the message from this is clear – shop buyers, beware!

This link shows nearly 20 major national multiple retailers who have suffered at the hands of the current recession and been part of the commercial property slump over the past year. Shop owners looking to sell, and shop buyers looking to buy, should be mindful of this report and that the worst is still to come. Experts predict that many more companies, especially retail companies, are on the road to fail which will cause commercial property values to slide even further. Most shop buyers are aware of this which is why they are either avoiding the market altogether or being very cautious when considering what to buy and how much to offer.

The number of shop buyers is dwindling from month to month as the retail sector is taking more of a beating than a skinny, unfit and ill prepared 18 year old facing the heavyweight champion of the world!

As many expected, 2012 has proved to be another extremely trying time for the commercial property market in the UK.

Banks are still not lending, consumer spending is falling, unemployment is rising, inflation is still out-of-control, retail failures have continued, the Eurozone crisis has created waves of volatility within the stock markets around the world and investors in general are still nervous and refraining from taking any risks. All these factors, and many more, are contributing to the commercial property market experiencing stagnation and in certain areas values are still on the decline.

What’s the answer? If I knew, I would be a very happy man.

Ground rents are very saleable assets today as they provide safe, long-term income. The problem is, in order to generate the income you need to qualify as an average earner, you need to buy lots of them.

Who sells ground rents? The answer is anyone who owns them. The main sellers are residential developers and ground rent investors. These people know they have an investment which will attract a lot of interest and so can expect very high prices. However, those who own ground rents who are looking to sell cannot all guarantee that they will get top prices. Some areas in the UK are more desirable than others and the most important element of ground rent investments, namely the unexpired terms on the occupational leases, will also determine the price achieved.

Although awe at Sell My Commercial Property want to buy all types of commercial property in the UK, we really want to buy high street shops in the south east and more specifically within the M25.

We also prefer shops which are freehold, occupied by companies who pay the owners rent, occupied by well known companies such as Boots, Coral, Barclays, Co-Op, WH Smith, Poundland, Clintons etc and have residential upper parts which are not sold off.

If you own shops similar to this, and are considering a sale, please call us today.

I am often asked who buys commercial property in London and the answer I give is how long is a piece of string.

There has been much talk of the London commercial property market performing well over the past few years whilst the rest of the country has suffered. Although there is a little truth behind this, the fact remains that the commercial property market throughout the entire UK, with the exception of central London, has suffered and is continuing to suffer.

If you want to know who buys commercial property in London, then you simply have to surf the web and Google will surely identify numerous entities. However, ask the question who buys commercial property in London who has the cash to do so, time to do so, desire to do so and skill to do so and the number of answers you will receive will be considerably less.

I cannot stress enough the importance of researching your buyers so that you pick the right ones as time today is precious and time waster today are multiplying at an alarming rate.