Commercial Finance Specialists

Restricted access to commercial mortgage finance means that no large-scale development projects are expected to start this year.

A major UK real estate firm claims that no large-scale commercial development projects are expected to begin in 2010.

Restraints on commercial mortgage lending for speculative projects mean property investment firms are unable to secure the finance to get them off the ground, according to Jones Land LaSalle.

Property investment firms would certainly be interested in such developments if financing with available, as it is widely-expected there will be a serious shortage of grade-A commercial space by 2012, head of the firm's national offices team James Finnis explains.

"We anticipate increased leasing activity over the next six months as current requirements complete however any upturn in activity may be relatively brief given the uncertainty of where replacement demand will come from," he added.

Earlier this month, Shell Real Estate announced that Jones Lang LaSalle would be the firm's primary provider of real estate support services in the Europe, Middle East and Africa regions.

Posted by Hadji Singh.