Property Focus: The Interview – Martin Davis
What are your views on the current state of the commercial and property development markets?
Disposal programmes by some of the largest operators across the hotel, pub, restaurant, care and retail sectors led to an increase in deal activity in 2010 compared to the previous twelve months.
At the start of 2010, Christie + Co predicted transactional volumes would rise during the coming twelve months. This prediction proved accurate as the number of deals we completed by increased by 32% compared with 2009.
We are very encouraged by last year’s transactional evidence since it confirms that prices have reached the bottom of the demand drive price curve.
In fact, average prices have increased slightly in some sectors and we are hopeful this upward trend will continue in 2011.
What key challenges and pieces of legislation do you think will most affect your sector over the coming months?
The banks entered 2011 in a powerful position. They will not only play a role in the future of the many businesses they support or control, but they will also determine how much capital will be released to new investment in our sectors.
While we are confident that the banks will avoid flooding the market with distressed property in 2011, we expect the numbers of disposals to increase. The January VAT increase, the public sector spending cuts and rising utility costs will test the endurance of businesses that are already being scrutinised by the banks’ business support units.
Those that fail to improve their performance will be forced to sell in order to repay outstanding debts.
When we consider the bank rate is still at a record low, mortgages are affordable (albeit harder to secure), business prices have generally bottomed out and trading conditions have stabilised most of our market, we expect the growth in buyer confidence already witnessed in 2010 to continue.
Why do you think the North West is a good place to do business?
Given that the North West has an excellent infrastructure with good road, rail and air connections, there are almost 20,000 businesses within the sectors that Christie + Co specialises. Furthermore, the city centres have seen significant investment which has encouraged many private sector businesses into the region.
What is your favourite building in the North West and why?
Manchester Town Hall. This building is worthy of the second city status. The Neo-gothic building has many carved images and artwork representing the city’s history. I particularly like the cosmopolitan feel of Albert Square itself with the al fresco dining during the summer months and the specialised markets throughout the year.
If you could improve anything in the region, what would it be?
Public transport. As has been mentioned in this column before, some elements of our public transport are good, however public transport is not tempting commuters away from their cars and until it improves, I cannot see this situation changing.
What was your first job and how did you enter your current line of work?
I spent the first 15 years of my career working in the residential sector in Central London and Kent. I joined Christie + Co in 2001 and became a licensed premises negotiator in our London Office. I was later invited to join the corporate pubs team covering the south of England and in 2004 I was appointed location manager of our Birmingham office. I subsequently took over as location director of the Manchester Office towards the end of 2006.
What do you most enjoy about your job?
Working for a company that gives you the opportunity to be both challenged and encouraged. Due to the nature of our business, we get to meet some very interesting and entertaining characters. Christie + Co also generates some exciting instructions and you never know which project will be coming round the corner next.
What is the best piece of advice you have ever been given?
To invest in real estate for the long term.
What is the worst piece of advice you have ever been given?
To invest in real estate in the short term.
