Things are looking up for the commercial-property business in the UK with the past two year’s decline coming to an end. This is what Hammerson Plc., proprietor of two of the UK’s main commercial structures, Bishops Square Complex and Birmingham’s Bull Ring Mall, had to declare.

Moreover, the rent that a property generates against its value, which is also referred to as its capitalization rate, is likely to rise to its highest level over the course of a month, particularly for new or refurbished stores and offices offering shared office space

According to CEO John Richards, rents have fallen enough and property values have started gaining stability. He added that there would be lesser contract defaults and vacancies from now on and the desk space rental sector is also again seeing more of a demand.

There has been an alarming fall of 44% in the nation’s commercial property values since June 2007. This fall was attributed to the prevailing situations involving the credit squeeze and the subsequent economic meltdown. However, the good news is that the fall during the month of May (1.6%) has been the smallest in almost a year.

Hammerson, one of the four leading property companies, is now entering a rights issue in order to avoid the risk of being a defaulter with the bank for non-repayment of loan. Their situation worsened in December when their assets value made a nosedive from 6.5 billion pounds to 1.05 billion pounds. The shareholders of the firm have therefore agreed to raise 584 million pounds from the market.