Allsop’s final commercial auction of the year will include its smallest catalogue for nearly five years.
The auctioneer this week published its final commercial auction catalogue for 2019, containing just 92 lots – the lowest number it has offered since February 2015.
“Volumes on the commercial side are clearly down,” said George Walker, Allsop partner and auctioneer. “We believe this is partly due to the fact that private treaty agents are hanging on to even the smaller deals and putting fewer assets through the auctions process. Some of these guys haven’t sent out an invoice in the past 12 months.”
Walker blamed the fall in volumes on a combination of retail market woes dragging down prices for high street stores and the issues surrounding the General Election, which is scheduled to take place just three days after the auction.
Allsop said that 67 of the investments on offer were located in London and the South East.
The largest lot is an unbroken parade of 13 shops, offices and four flats in Pitsea in Essex with an annual income of £415,717 (pictured). It is guided at £4m.
The lot that could be sold reflecting the highest yield is a New Look store on a new five-year lease in Grimsby. It currently generates £200,000 a year and is guided at £1m.
“Investors are hoping that the forthcoming General Election will mark a turning point in confidence in the market and the wider economy,” Walker added. “We are still seeing strong demand for commercial property, and for assets not dogged by retail issues prices are remaining resilient.”
Allsop’s next commercial auction will take place on 9 December at the Berkeley Hotel, Wilton Place, SW1.
