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LATEST NEWS & EVENTS Fragile state of economy 'may continue to impact on commercial property'  The fragile nature of the economic recovery currently being seen in the UK may suppress commercial property, it has been suggested. According to Legal & General, the sector enjoyed a good 12 months last year, with equities and bonds delivering "excelling returns" and property clawing back some of the losses witnessed in 2008. However, many companies are still struggling, making them nervous to commit to expansion. This means the lettings market is still not back to full strength, the organisation noted. In addition, cost cutting remains a priority for businesses, meaning there is downward pressure on rents at present. However, in a more optimistic summary of the prospects for the sector, Kelvin Davidson, property economist at Capital Economics, recently suggested that commercial property in the UK should see growth in rental income over the course of 2010. His comments followed the release of research from Knight Frank, which suggested the market in the West End of London and the City should be boosted in coming months. John Newton, commercial property partner at Lamport Bassitt, said: "We are experiencing considerable activity in the commercial property investment market at present. "This is clearly being fuelled by a quite artificial set of circumstances, namely the historically unparalleled low returns on fixed yield investments. "Another unusual feature of the current market is that many of the buyers who are active have very low or no borrowing, which makes them able to move very quickly and seize what they see are opportunities." 
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