Property Focus: The Interview – John Downes

IN OUR series of interviews with top professionals from across the property sector, TheBusinessDesk catches up with John Downes, managing director of property investment and management company Langtree.

What are your views of the current state of the commercial property and property development markets?

From Langtree’s perspective the occupational market has been quite resilient so far. Clearly commercial property prices have reduced significantly from their 2007 high but recently we have seen some recovery in values, predominantly at this stage in grade A stock. Whether the hardening of values will continue through 2010 is debatable. 

The development market is a different story. Even if funding could be secured for new development, which is doubtful, current low values with uncertainty of demand, together with the killer blow of empty property rates means that development is a very unexciting prospect for the time being.

What key challenges and pieces of legislation do you think will most affect your sector over the coming months?

It’s been talked to death already but hopefully, like the poll tax, the discussion over empty property rates is a discussion that doesn’t abate and will in the end make the government of the day realise the negative impact it has on speculative development and how that feeds through to the wider economy.

Also how the challenge to improve environmental performance of buildings is introduced into the property market. It is clear that action is needed, but how measures are introduced needs careful thought. 

For example the latest CRC scheme has recently been deferred for 12 months which is a help but it still is flawed in that it places the onus on landlords, by way of the pricing of credits, to effect the improvement in energy efficiency of its tenants when clearly there is no ability to do so.

Why do you think the North West is a good place to work?

It has a diversified economy and a good economic concentration around two strong drivers in Liverpool and Manchester. Also, by and large, the local authorities and development agencies are more focused and sophisticated in their approach to economic development than other regions of the country.

What is your favourite building/development in the North West and why?

I try to speak out for the largely unnoticed and unreported developments in the region that bring forward new quality accommodation for SMEs. 

From government down we all recognise that SMEs are the source of our economic growth, yet their property needs are rarely given attention. Liverpool and Daresbury Science parks for example, plus we have undertaken developments of our own such as Connect in Liverpool.

If you could improve anything in the region, what would it be?

The weather!

What was your first job and how did you enter your current line of work?

I started work underground at Parkside Colliery in Newton le Willows. Eventually, working on the redevelopment of closed colliery sites got me into property.

What do you most enjoy about your job?

It’s a different challenge every day and a completed development that has been years in the making gives a real sense of achievement, if it lets of course.

What barriers have you faced during your career and how have you overcome them?

Bureaucracy is a challenge but there are always good people in any organisation and getting to them and getting them engaged in the opportunity can usually overcome resistance to change.

What is the best piece of advice you’ve ever been given?

Make every pound a prisoner!