Last but not least to be mentioned, a factor thatinfluences heavily commercial property value cycle is the Shifts of development in trending areas such as Hackney Wick andShoreditch.
As development in central London is getting more andmore expensive, developers are starting to look for opportunities furtherafield than in the traditional highly desirable areas such as Mayfair or WestEnd, and more in areas that were previously ignored or marginalized. (Business Insider Inc., 2016) One of the bestexamples would be Shoreditch, as it has evolved from being an area most ofpeople avoided due to its crime reputation and run down, to one of London’smost trending areas, home to the coolest spots for leisure and business.Developers are starting to take advantage of thatconcept of areas with changing reputations by building sites at a rapid rate inthem. Proactive Factors: Expect Market concurrence Space Development : Redesigning/Refurbishment Environmental efficiency Mitigation of Risks Management of Costs Smart Property reviews Management Smart management of Landlord Tenant Relations (Long duration leases, FRI leases, etc.) Proactive factors havetheir own kind of impact on the property market value, they are mainly measuresthat businesses take in order to face the reactive factors that are results toexternal conditions.
The most engaging one is the Proactive property management. It not only leads to other positiveimpacts to face the variations of the market value but it is the most pragmaticway to improve return.With measures like redesigningand refurbishing space in order to make it more attractive, valued and useful,Pro-active management is mainly a tool that helpsmanaging property agreements in a way guaranteeing risk mitigation by establishing pragmatic conditions relating todifferent aspects such as the landlord/tenantrelations, in order to increase the value of the property, e.
g. longduration leases, FRI (Full Repairing and Insurance leases).