The window to take advantage of the current strong purchasing conditions could be shrinking rapidly. Nick Terry who heads the office purchasing team at Devono Property who exclusively represent purchasers of commercial space says, “Our forecasts are that interest rates will make their first upward move before 2010 is out.”
Indeed, Kevin Daly from Goldman Sachs states “With unemployment stable for the past year, growth strong and tax revenues healthy we can build an argument that the MPC should be raising rates already”. He goes on to say that once a rise happens, “Rates could then rise rapidly to 2.5% by the end of next year”.
Ray Barrell of the National Institute of Economic & Social Research goes on to add, “If higher inflation from sterling’s fall persists, the Bank [of England] is going to have to raise [interest] rates”.
As a result, now is the best time in decades for companies to purchase their own offices. With interest rates...