Published on Monday, 23 February 2015
The RICS has published the results of its UK Commercial Property Market Survey for the fourth quarter of 2014. The main headline from the survey is that demand continues to comfortably outweigh supply.
There is a firm trend in both occupier and investment market conditions with each sector anticipated to post rental and capital values gains across most of the UK in both the short term and in the medium term.
On the occupier side tenant demand rose across the commercial property market for the seventh quarter in succession, although there was a slight easing of demand during quarter four which reflects normal seasonal market conditions. As demand has grown, availability has continued to fall and the availability of space across the market place has declined for six consecutive quarters. These tight market conditions have insured that rent expectations remain positive. It is anticipated that across the UK the office and industrial sectors are likely to see the firmest gains over the next quarter, although London rent expectations remain materially higher than for other parts of the country.
Investment enquiries have continued to rise at a considerable pace with an increase from foreign investors particularly for prime stock. As with supply of stock for occupation, the amount of stock available within the investment market is also starting to decline.
Given the backdrop of strong occupier and investment demand and falls in stock levels, expectations for capital growth across all sectors are high.
The survey also posed the question as to whether or not the run up to the general election would introduce a slowdown in the market place with opinion being inconclusive in this regard.
Clark Weightman Director, Andrew Clark, is a contributor to the survey.
For further information please contact Andrew Clark on 01482 645522.