Richard Auterac is a founding Director of Acuitus and one of the UK’s most experienced commercial property auctioneers. In this interview, Richard shares his perspective on the evolving commercial property market, the role of auctions, current sector challenges, and the trends shaping its future.
What is your background and experience in the property industry?
I have had a long career as a professional auctioneer and commentator on the UK commercial property auction and private investor markets, having overseen the sale of more than £6bn of individual property assets during my tenure behind the rostrum. I have more than 30 years’ real estate advisory experience, and was a founding Director of Acuitus in 2010.
Prior to Acuitus, I led the auction business of Jones Lang LaSalle, one of the world’s leading real estate advisory firms and was the longest serving UK auctioneer in its 230 year history. During my time at the company I advised leading financial institutions, major property companies, public authorities, private investors and a huge variety of other clients in all property sectors throughout the UK.
Can you tell us a bit about your business and what you do?
Acuitus is a specialist commercial property auction house that advises sellers on bringing assets to market and helps buyers find the right investments across the commercial property market. The firm has offered for sale over 3,000 individual properties and been instrumental in delivering more than £3bn of commercial property transactions since 2010. We are also major market commentators through the dissemination of our proprietary research and thought-leadership.
Who are your typical clients and how do you market your service?
Our client base spans UK institutions and Investment Funds, US Investment Funds, UK REITs, private property companies and private investors. We employ a blend of B2B PR and marketing strategies including sharing our professional insights, thought-leadership, and sector data with our client contact database, B2B media and targeted LinkedIn and other marketing campaigns. The personal relationships that we at Acuitus have with our clients also enhances our marketing reach and impact.
How did you first cross paths with Newmanor Law?
I was introduced by a highly regarded mutual contact to Newmanor Law early on after the founding of the firm by Karen and her partners.
What are the key challenges currently facing the real estate sector and how are you addressing them?
There is no silver bullet to the challenges facing the real estate sector, but there are some obvious trends where problems lie which in turn can help drive solutions in the longer term.
The first problem is the lack of quality stock coming through the market place. Owners of commercial real estate are sensitive to pricing and valuations, especially those long-term owners who might now be facing rebased rents and subsequent valuations from a previously more buoyant market. That being said, recent stabilisation in retail values (amongst other asset classes) is a sign for cautious optimism. The next stage in the property cycle is certainly upwards, but it is always a matter of timing and increasing market confidence.
Finance is also a challenge, though not so endemic with the majority of our clients at Acuitus. The length of time to secure lending can be a real hinderance to new entrants into the commercial property market.
What trends do you foresee shaping the real estate industry in the coming years?
Much like what we have seen since the pandemic, the digitalisation and opening of the commercial property market has slowly expanded the investor pool. We saw last year a segment of BTL investors leaving the residential market and being attracted to the stable returns offered within the commercial space.
Indeed, digital access through online auctions has been transformative in our area of the market. But with the growing investor pool it is more imperative than ever for professionals to offer transparent processes and quality information to ensure clients are making decisions in their best interest.