Potential investors in the UK commercial property market are
being advised of 'fundamental changes' to the way the sector
operates, according to a property investment expert.

Phil Clark, head of property investment at Kames Capital,
believes these changes in the way the commercial property sector
functions are likely to remain in place for the medium term as the
nation sits tight amid economic uncertainty.

Mr Clark, who currently works as the chair of the Investment
Property Forum, has highlighted the problems within the Eurozone
and increasing demand for new regulations within the sector as the
main contributors to this shift in operations.

In terms of the future for the commercial property market, Mr
Clark remarked on how this time last year there was a feeling of
optimism about the potential of the sector. However, the focus
towards the second half of 2011 soon shifted towards concern about
whether the Eurozone was capable of surviving in its existing
form.

Despite the sector becoming increasingly wary about the future
of the Eurozone the UK commercial property market as a whole
reported a return of 8.1 per cent last year, with the value of
transactions in line with previous years, approaching £30
billion.

Mr Clark believes investors are now looking at opportunities to
expand their portfolio in new areas of the country, outside of the
capital and the city fringes.

"The problems arising out of the exuberance of the last economic
cycle are now giving rise to the opportunities in the next, as
banks continue to deleverage their exposure to UK commercial
property and more experienced investors look to buy commercial
property investments outside of London and the south east," he
said.

At Pall Mall Estates we have a fantastic portfolio of low-cost,
high-value business space to let across the UK. With office space to let, industrial units to let and retail, yard
and trade space also available on competitive lease terms.

—