Commercial property can be a lucrative investment but there are risks for local authorities.
There are a variety of reasons why local authorities invest in commercial property. For some, the motivation is supporting regeneration and growth in the area, whereas others see it as an opportunity to generate income to offset reductions in their funding.
In the NAO’s review of 45 authorities' investment strategies, they found that all but three identified income generation as a significant objective.
Some local authorities have invested significant public money in buying commercial property with the aim of generating a financial return. Debt has increased for many of them as a result, with a small group seeing notable increases in the amount they owe and the cost of repayment, according to the NAO. Gareth Davies, the head of the NAO, warned:
According to CoStar research, since 2015 local authorities have invested around £10bn in commercial property and now own or part own more than 20,000 such assets.
Are local authorities doing enough to protect their investments by sourcing reliable, independent commercial property market information?
This is where CoStar can help you. Just as the NAO relied on access to CoStar data when preparing their report last year, many local authorities already use CoStar to pursue their objectives while avoiding the risk of relying on unreliable information.
CoStar gives you the critical information you need to:
