UK COMMERCIAL PROPERTY MARKET UPDATE

Published on Monday, 29 September 2014

The RICS has recently published its latest Commercial Property Market Update which provides encouraging news across the commercial property sector.

The results from the quarter two 2014 RICS UK Commercial Property survey demonstrated that the recovery in the commercial real estate market continues to strengthen on both the occupier and investment side.  The scope for rental and capital value gains is becoming increasingly widespread throughout the country and across all sectors.

The survey confirms an upturn in tenant demand.  The view is that the momentum is set to continue.  This is being driven by the broader expansion in output within the UK economy and improvements in job creation.  Availability of property has declined for a fifth consecutive quarter which is likely to have continued upward pressure on rents and capital values.

The investment market also continues to strengthen with investor appetite improving across the board.

The RICS Commercial survey also measures the longer term sentiment of surveyors with the general view being that rental and capital values will continue to grow.

Whilst the survey covers the whole of the UK, at Clark Weightman we continue to experience improving market conditions across the Humber region.

Andrew Clark is a contributor to the RICS Commercial Market survey.