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London named as key location for distressed commercial property

January 18th, 2012

London is set to be a prime destination for distressed commercial property in 2012, forecasting from Jones Lang LaSalle has suggested.

Andrew Burrell, head of forecasting at Jones Lang LaSalle, said those with distressed commercial property on their hands will be interested in getting returns from those properties that are easiest to sell.

In terms of location, this means “strong markets where there has been a stronger recovery, such as London”, he added.

“It is more about the quality and the potential of what is being disposed of, rather than any particular location per se. But obviously the ones that are in the shop window are the ones that will get the most attention and will be the priority,” Mr Burrell explained.

His comments come after a Bloomberg report suggested commercial property values will slump in 2012, on the back of an uncertain economic situation.

The six economists, analysts and executives suggested demand for properties in all but the best locations will fall.

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