Commercial Property Development in Central London: Marketing Report

This marketing report provides an in-depth analysis of commercial property development in central London. It explores the key drivers influencing the market, including economic growth, government tax policies, and the effects of currency fluctuations. The report examines the impact of Brexit on the property market and assesses the role of Business Improvement Districts (BIDs) in supporting regeneration and economic development. It highlights the importance of London's cosmopolitan appeal, education, and lifestyle factors in attracting investment. The report also discusses investment returns, low-interest rates, and the cyclical nature of the market, emphasizing the demand for commercial property and the importance of political and economic stability. The analysis covers factors such as the influence of government tax, the effect of currency prices, and the role of BIDs in the market.

Running head: MARKETING 1
STUDENT NAME:
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TOPIC: MARKETING
DATE: 3-05-2019

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Contents
Introduction.................................................................................................................................................3
Main drivers for commercial development.................................................................................................4
Proposed exit from the European Union.................................................................................................4
Government tax.......................................................................................................................................5
Effect of currency price............................................................................................................................5
Commercial Property development in central London............................................................................6
Business Improvement Districts..................................................................................................................7
Role of BIDs.............................................................................................................................................8
Cleaning and greening.............................................................................................................................8
Place branding.........................................................................................................................................8
Promoting tourism..................................................................................................................................8
Public Realm............................................................................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10

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Introduction
London is the greatest city with its topmost technological and robust performance phase. The
change in the city has instantly made a major evolvement that tends to have a positive aspect for
the acceleration with the Euro-political subsidies. From a decade, London has faced several ups
and downs in terms of inflation and economic development rate in the UK economy. The change
in the key accelerant situation tends to ensure a talent pool that has emerged in the economy with
bioscience and technological impact with increasing environmental concern. The supply
performance tends to ensure marketplace with a guide to focus on operating the property
development system with several categories. The commercial property price in London has
increased to a major tendency of growth in the property market. Focusing on rapid growth, the
concentration of prime areas in central London affect the overall market in London city
(Hamptons International 2018). The price is regularly increasing with the impact of consistent
performance of long term FTSE 100 and raising expectations of people to cater to the market.
Foreign buyer, commercial property companies, investors, developers, and private businessmen
are now seeking for a high level of demand for property to gain and seek cash in the market. The
liquid commercial market has made an attempt to attract investors and catch the real advantage
of property development. Consistently performing the major market attractiveness, the
commercial market is attracted by prime businessmen and investors in central London.
The main drivers for commercial property development in central London are discussed with the
significant impact of business improvement districts in detail. The essay focuses on commercial
property development for business operations and investment purpose. Economic growth is one
such driver that impacts commercial property development in the country. The investment
market is the foundational measure that ensures the investment volume and concentrates on total
trading volumes (Cajias & Piazolo 2013). Brexit is one such reason in which the commercial
property market has uncertainties and the UK economic condition varies every year, but there are
developmental measures taken by the government and investors to focus on investing in UK
property.
Main drivers for commercial development
The central London market is cyclical in nature which seems that the cornerstone of the city
ensures development with aid for more than 10 years. This is a correct statement that ensures that

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the property cycle keeps on changing year by year with the economic development rate and the
economic condition that can be predicted in the near future. There are key drivers that are the
reason for property development in central London. The supply situation is considered to be a
major development cycle with tenant demand that strengthens the economy. It is assumed that
the tenant demand is continuously strengthening its roots within the next property cycle.
Investment in London properties is a prime goal of Londoners in terms of good returns on
investment. London is the most desirable country that a person would want to live and invest in
the property. There are several measures taken by the government in terms of investment returns
and pushing the investors to focus on the yields of development of the property. There are at
times the negative consequences while investing in London property as the economic condition
is changing due to Brexit and the property level price is fluctuating in the city with high
dominance of investment. Low-interest rate is a major consequence of negative investment
returns which cannot be improved immediately. Since 2010, the commercial property
development in central London has a fluctuating market due to Brexit and economic condition of
the country (Colliers 2018). This is the appetite in which the higher return is expected.
Transactions levels have been changed from year to year which is adjusted in relevant periods
with price variations and ultimate property development.
Proposed exit from the European Union
The recent change in the property market is the property taxes that vary due to the proposed exit
from the EU. This has evenly increased the pace of capital which is the major advantage for the
country. The prime areas such as central London has consequently made a major influence in the
commercial property development (Fuerst & van de Wetering 2015). These affect the
expectations of the property development in the next capital gains that are forecasted in the year
2019.
There is a raft in the tax change that has been observed with company purchases in the
commercial market. Major and the hardest change is relevant to the purchase price negotiations.
The supply of luxury commercial property has increased on the top of this issue while the stream
adds the weakening expectations of the market currently (Chegut, Eichholtz & Kok 2014). The
number of transactions that are expected is considered equal to the market analysis with
increased property value and ownership. The overall property tax of the UK economy ranks in

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the economic co-operation and development areas. There is a straight comparison between the
year 2012 to 2018 which seems that the price has improved the market condition of central
London with sales of commercial property and reduction in the annual property taxes as
observed. Comparing the cost of the commercial property in London has changed the stamp duty
and its purchase with government fees and taxes that shows a higher tax rate in the UK but the
annual changes are low.
Government tax
Government tax has improved its position in the year 2017 while comparing the prime growth of
commercial property in central London. There are several factors that tend to reflect the business
condition and tends to have major growth in attractive cities in the UK. The tax change and the
government influence would negatively impact the situation considering the development of the
country with a slow and steady growth rate. Investing for a longer period, the government tax
influence the impact of investment and the risk towards the property with uneven price growth.
Effect of currency price
London’s market is positive while comparing the growth rate between 2016 and 2018. The
sparkle in the commercial property price has raised the market with desirable growth rate and
capital consistency in the commercial market (Das & Wiley 2014). The capital of the country
tends to support the recovery plan which is beneficial and tends to support the long term
influence of the market. the low and volatile sales of the property may hinder the prime markets
with a point of forecast in order to ensure different expectations of stakeholders and investors
with the official land registry database. The average increase in the market is 1.5% in the year
2018 which is a positive expectation of property market in central London (Knight Frank 2018).
There is a sharper fall in other markets while considering the downward adjustment for textile
and accessories market. The recorded prices tend to be higher in the next year while considering
the different approach of growth in the year 2019.
Commercial Property development in central London
London is a cosmopolitan city which is an international appeal in the market. thereby it is
important to focus on the financial return to be higher than the last year for every upcoming year.
Considering the cosmopolitan city, the nature and the cultural links of the city are higher with a
strong trade affair that affects the commercial property market. There are legal systems and

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reliable conditions that ensure the market to be maintained effectively with business confidence
and a clear concise statement of improvement in the commercial market. The political landscape
of the London economy tends to be volatile at a time while it then remains stable for a certain
period that brings an assurance to the investors to focus on and bring considerable profit from the
market. With the concern in the UK’s market, the position of the market revolves with the
confidence of UK market and Brexit. The factors that are ranked the most important consider
HNWIs that is high net worth individuals for investment purpose. The UK economy presents a
better category of growth with most areas of growth while comparing to New York, Paris, and
Hong Kong. UK economy is number one economy that ensures that the business is faster and in
the growth pace due to the business and property market that tends to have a major implication in
the UK economy with the ability to perform the business in the most amazing manner. This
proves that central London has the growth and the tendency to focus on the international market
with the level of investment and the concerned factors of improvement.
Source: (Knight Frank 2016)
The famous quality that central London has focused is on education programs and universities
that are most important in the business with independent schools and academic achievements.
The commercial property even includes the education centers that are most affiliated in central
London with academic achievements and consider the range of cultural and creative
opportunities in the market. The leading research universities and the University of London score
the highest with the independent OECD countries that involve more than 24,000 children

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studying in the school in the UK. It impacts the higher degree of the property market in the
country with historic platforms and out space that ensures global cities and development.
Lifestyle, education, personal security, healthcare, business reasons, and transport are the major
drivers of growth in commercial property development. The growth in commercial property is
expected to be 3.0% in the year 2020 (Knight Frank 2016). In other areas like greater London
and prime London, property growth is expected to be 2.5% and 4.5% respectively in the year
2020.
Business Improvement Districts
Business improvement districts play a major role in central London and its development. BIDs
add a specific value of growth while focusing on additional funding streams and considering
local priorities of the business in central London (Future of London 2016). There are several
areas in London where BIDs have influenced the market while supporting regeneration and
economic level of the country. With the major influence of the business, the building condition
of the central London has improved with a leading change and is a wider aspect of growth while
focusing on membership base and considering the relationship between the partners and the
interest in several areas. London’s high street has concerned with industrial estates and has
become 48 BIDs that are majorly designed for improvement and have established the
consultation with proposals and consideration in BID organization. BIDs have a great history
which is 50-year-old history considering special purpose districts with specific assessment
districts to be considered in the business (KPMG 2016). Central London has a major figure to
consider the leading way on the development of BID in the city. BIDs are found in central
London with the most frequent advantage that it influences the people to consider the
development of central London town with the business operations to be enhanced for a specific
purpose.
BIDs in London have a core role in the development of the city. The main role is to consider and
agree on the development of the city while broadly considering the support of the business and
enhance the trading in the local business environment. This seems to have a greater advantage
that the city would get while encouraging visitor footfall in central London. BIDs are like the
vehicles for growth that help to regenerate the demand and consider influence in the market with

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focus in the business operations and work on providing a combined effort and interest of
business to improve local area and development. Changes to the physical environment and
encouraging growth in the business is the major influence that BIDs consider for central London.
Multiple impacts are observed in the business with high streets and centers to build that influence
the business and the community as well. There are several BIDs that directly help and support
the business to focus on BID levies and improve business efficiency. Camden town has
unlimited BID, Angel AIM, The Fitzrovia partnership, New West End Company, Baker Street
Quarter, North bank BID, Team London Bridge, South Bank BID, Victoria BID, Waterloo
Quarter BID, Blue Bermondsey BID, and Paddington Now are the central London areas where
BIDs work effectively in order to enhance business efficiency and consider growth with
competitive advantage.
Role of BIDs
BID’s help to shape the local areas and work on several improvements in growth and
development. Cleaning, greening, lobbying, place branding, up-skilling local communities,
promotion of tourism, improving way-finding, enhancing security, public realm infrastructure
and several other roles that BIDs work on for business upliftment and area development in
central London.
Cleaning and greening
BIDs attract the visitors and tend to make the city clean and green thereby the major focus is to
remove the dirt and clean the areas for the developmental process. BID plans are increasingly
considered to repeat in the business with business upliftment process and attract the visitors in
the local area while planting and enhancing green walls (London assembly 2016).
Place branding
The market local areas in BID are considering to help the visitors while focusing on examples
such as managing consumer websites and considering identity management in the business.
These tend to focus on place brand which suggests a better option for BIDs to focus on local
information stations and support place branding in central London.
Promoting tourism
The next role of the BID is to promote tourism which will enhance the economic condition of the
country. Promoting the culture and tourism there is a major encouragement of footfall of visitors.

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Street ambassadors are encouraged with BIDs efforts. There is a subtle growth of 3 percent that
is observed in 2018 while encouraging BIDs to promote tourism and culture.
Public Realm
Improving the public realm is a major concern factor that highlights the business and improves
sustainable travel in the city. Pedestrian and improvement in cycling are encouraged for a better
lifestyle and is a way-finding option that encourages the character of business with routes and
roads that mark the importance (Whitehead 2013). Team London is encouraged while meeting
BID results as it is the progress that has been observed in London city. Security is a major
concern which enhances the new business realms.
Conclusion
The essay focuses on the commercial property development criteria that are discussed in brief.
As of now, the results are compared from 2010 to 2018 drastically while encouraging the key
drivers that affect the commercial property. Investing in commercial property is the new trend
for investors in central London. There are several places that central London has been the peak
point and is the most expensive area in the world such as London streets. The business units are
enhancing growth with Brexit as one of the reasons for growth. The development of the country
is intrinsically managed with key drivers and these key drivers affect the commercial property in
central London. The development trends are addressed in the central London market with a
forecast of improvement in the property market. the effect of property price has varied from 2010
to 2018. There has been a change in the price variation that has been mentioned in the essay
while explaining the major area of change in the business with currency change and economic
condition of the market. inflation is the major reason where the investors do not wish to consider
the basic investment in the London market in the year 2017. Gradually the market has changed
and the positive aspects such as Brexit and government tax has increased the level of influence of
investors to focus on the property market basically in commercial property.
BIDs play a major role in central London for its business efficiency and operations that are
enhancing the business and the market. BIDs in central London have been mentioned for growth
as it enhances the market with the basic system of improvement in the commercial market and a
tendency to increase tourism in the market. There are several ways in which the BIDs influence

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the commercial market and enhance the basic opportunities for the business to grow and consider
improvement in the business. BIDs are consistently the major drivers of change in central
London for improving business operations and efficiency.

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References
Colliers, 2018, Real estate investment forecasts Q3 2018, Retrieved from
http://www.colliers.com/-/media/files/emea/uk/research/market-overview/
colliers_international_reif_q3_2018.pdf?la=en-GB
Cajias, M, & Piazolo, D, 2013, Green performs better: energy efficiency and financial return on
buildings. J. Corp. Real Estate vol. 15, no. 1, pp. 53–72.
Chegut, A, Eichholtz, P, Kok, N, 2014, Supply, demand and the value of green buildings. Urban
Stud. Vol. 51, no. 1, pp. 22–43.
Das, P, Wiley, J A, 2014, Determinants of premia for energy-efficient design in the office
market. J. Prop. Res, vol. 31, no. 1, pp. 64–86.
Dunse, N, Jones, C, & White, M, 2010, Valuation accuracy and spatial variations in the
efficiency of the property market. J. Eur. Real Estate Res, vol. 3, no. 1, pp. 24–45.
Future of London, 2016, The evolution of London’s Business Improvement Districts, Retrieved
from
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16.pdf
Fuerst, F, & van de Wetering, J, 2015, How does environmental efficiency impact on the rents of
commercial offices in the UK?. J. Prop. Res, vol. 32, no. 3, pp. 193–216.
Hamptons International, 2018, The Prime Property Market, Retrieved from
https://www.hamptons.co.uk/media/446074/179-fa3b339c6dcc4f2a7ca3e9e05ad3e164_1622-
primepropertyreport-a4p-hwp-complete-1.pdf
Knight Frank, (2018). The London Report 2018, Retrieved from
https://content.knightfrank.com/research/982/documents/en/the-london-report-2018-5244.pdf
Knight Frank, (2016). Central London Offices, Retrieved from
https://content.knightfrank.com/research/1093/documents/en/london-and-brexit-4156.pdf

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KPMG, 2016, European real snapshot: Current developments in the key real estate markets in
Europe, Spring, Retrieved from https://assets.kpmg/content/dam/kpmg/pdf/2016/03/real-market-
snapshot-fruehling.pdf
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https://www.london.gov.uk/sites/default/files/final_bids_report_0.pdf
Whitehead, C M E, Travers, T, Scanlon, K. & Fernández A, M, 2013, Creating the Conditions
for Growth. Berkeley Group. October