Published on Thursday, 26 November 2015
RICS has published the results of its UK Commercial Property Market Survey for the second quarter of 2015. The headlines state, the occupier and investment markets continue to tighten driving rents and prices higher. The survey paints a robust picture of the commercial property sector with strong demand from investors and occupiers likely to continue into the second half of the year.
The demand for leasable space has increased for 11 successive quarters which is the longest run of uninterrupted occupier demand growth since the survey’s inception in 1998. The majority of gains are in the industrial and office sectors with retail gains being more modest.
The survey also reports nine consecutive quarters where the amount of space available for occupiers has fallen. The biggest declines were in the office and industrial sectors. The survey reports that with the mismatch between demand and supply rent projections by surveyors are buoyant. It is anticipated that rents will rise over the next three months and the incentive packages being offered by landlords have decreased.
We have to remember that the RICS survey is for the UK market as a whole. We did see a very steady May in terms of market activity but this is perhaps not surprising bearing in mind there were two bank holidays and a general election.
We have also seen the amount of stock coming to the market increase in July which is a reversal of the national trend.
Clark Weightman director Andrew Clark contributes to the survey.
For further information please contact Andrew Clark on 01482 645522.