Now is the right time for businesses to invest in their own commercial property.

So says Peter Golding, chief executive of Golding Commercial Properties, who was quoted in the latest Rode & Associates Property Newsletter.

Golding says the interest rate reduction announced re-cently - "and more to come" -should increase confidence in the business and relieve the sector in general.

"Hopefully this will be of particular benefit to retailers.

"Many retailers have experienced reduced turnovers due to the high interest rates and consumers' reduced spending capacity."

Golding says retailers at shopping centres have been under considerable financial pressure "because in many cases their rental agreements would have been signed a few years ago - when rentals amounted to only about 10% of turnover.

"Of late, rentals of around 15 to 20% of turnover - or even as high as 25% - have been taking a substantial bite out of retailers' income. Landlords also have not always been in a position to make concessions to their tenants.

"The current, far more positive scenario - with predictions of several prime rate cuts over the next year - should see these disparities drop and create better yields for businesses through increased consumer spending."

According to Golding, it is hoped that further interest rate cuts will stimulate significant growth in this sector and see more entrepreneurs coming into the market, encouraged by the lower cost of finance. - The Star