There is growing concern for the state of the UK commercial
property market after real estate values fell for a fourth
consecutive month in February. The data from Investment Property
Databank Ltd. (IPD) indicated that Britain's economy was slipping
back into recession for the second time in three years.

The average value of stores, office space to
rent and warehouses declined by 0.3 per cent last month from
January, the IPD revealed in a statement this month. Meanwhile retail space to rent also declined by as much
as 0.4 per cent.

Phil Tily, managing director at IPD, said: "Weakening occupier
demand underlies this month's fall in values, and outside of London
this is now having a notable drag on performance."

According to leading Built Asset Consultants, EC Harris, the
lack of demand for new commercial properties, combined with tighter
credit and a raft of job cuts made by financial services firms,
will prevent the development of many planned commercial property
developments in London in particular.

Developers returned to office construction projects back in 2010
following the ease of the global financial crisis in the hope that
tenants would seek new build office space to rent when their leases
finished, but so far this does not appear to be the case.

Earlier this month it was revealed the Department of Energy and
Climate Change was planning to revitalise the nation's existing
commercial property stock in order to meet the demands of the 2011
Energy Act, subsequently reducing commercial energy
consumption.

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