"With too much money chasing too little stock, the multi-billion-pound question for the industry is how much the core market can be expanded," says the study's author, Professor Tony Key of Cass Business School. "It is easy to identify a fairly short list of major corporate occupiers that, between them, could add close to euro 73.93 billion ($92 billion) or nearly 25% to the value of the investment market if, of course, they could be persuaded of the advantages of selling."
In total, Key concludes there is around euro 903 billion ($1.1 billion) of commercial property in the UK, split between retail (euro 298 billion or $371 billion); office (euro 235 billion or $293 billion); industrial (euro 187 billion or $233 billion); and other commercial assets (euro 183 billion or $228 billion).
But Key points out that the majority of owner-occupier stock is substandard for investment, leading to huge discrepancies. "Because owner-occupied values per square meter are so much lower, the investment market covers less than one-third of retail and office floorspace, far below its 60%-plus share of capital value," he states.
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