Businesses across the UK as a whole and in the Westcountry are slowly looking to expand by taking on more office, industrial, retail & commercial premises in which to house their operations, according to the latest RICS Commercial Market Survey.
Interest from would-be tenants of shops, offices, factories & warehouses saw a rise during the run up to summer with a net balance of 15% more chartered surveyors reporting increases in commercial property demand. While the lion’s share of this growth was seen in London, all areas of the country saw something of an uplift. Although commercial property activity is still subdued at a headline level, the results of the latest RICS report are consistent with the signs of recovery that has been visible in much other recent economic news flow.
In tandem with rising demand, the amount of available commercial property dipped slightly which, in turn, led to expectations for future rents stabilising. Since 2008, predictions for the amount of rent business premises will generate has been very much in the doldrums so this could be a further sign that a corner is slowly being turned.
Significantly it would also seem that the amount of newly built commercial premises is beginning to stabilise. As with rental values, the downturn saw commercial property (especially office) construction levels drop considerably yet no notable falls have been evident for some time – the amount of office space built last quarter even rose.
It was been well publicised that the commercial property sector across much of the country has been struggling since the onset of the credit crunch. London has been something of an exception but at long last, there are some green shoots beginning to sprout in other parts of the UK, including us here in Devon, Dorset & Somerset. However, the generally better numbers on tenant demand are an encouraging pointer to the future.
If you are a business in Exeter or the South West looking to expand, relocate or utilise your current commercial property space (office, industrial or retail) please contact Space on 01392 256412 to see how we can help your business save money on commercial property.
