Posted 11/4/2023, 10:00:00 AM
UK Commercial Property Sector Faces Crisis as Demand Plummets Post-Pandemic
- £1.6 trillion commercial property industry facing severe downturn as demand collapses post-pandemic
- Offices hit hardest as occupancy rates plummet and companies forfeit leases, with London vacancy at 3-decade low
- Property funds gating withdrawals as investors flee, with over £9bn frozen already and more expected
- Banks face potential loan losses as property valuations fall, threatening to create downward spiral
- Pension funds heavily exposed through direct holdings and could become forced sellers, adding to downward pressure