Occupier activity now at highest levels since 1998
Occupier demand for commercial property in the UK is currently hitting levels not seen since 1998, according to the latest commercial market survey from the Royal Institute of Chartered Surveyors.
Q1 of 2015 was the 10th consecutive month of acceleration for the demand of commercial properties and there are no signs that demand will slow any time soon.
With investments also surging, the report says these figures are an overall reflection of the economic recovery.
Commenting on the report, John Kent, Executive Director at CBRE, said: “Despite general election uncertainty, there is a great deal of confidence in the market.”
The RICS also reported that enquiries from overseas buyers rose to 34% more in Q1 of 2015, in comparison to 17% in Q4 of 2014.
This increased demand has inevitably continued to place strains on supply, with Joshua Pater of Colliers International commenting: “Supply levels are now that their lowest since 2007.”
The report revealed that available space continued to fall in all sectors, with retail declining the least and both industrial and office space numbers experiencing a sharp fall in availability. This demand is driving up rental price expectations, which rose during Q1.
Some agents and surveyors commented that they believe the market may pick up even further following May’s election. Ultimately, the report appears to be good news for the commercial property market and economy in general.