The latest RICS Commercial Market Survey has just been published for Q1 2014. It reports continuing improvement in commercial property market conditions, with the recovery moving out from London and spreading across the regions. Occupier demand is improving across all of the 3 main sectors of the commercial property market and property availability falling. This is expected to be reflected in reduced tenant inducement packages and increasing rents. In the investment sector, buyer enquiries are increasing, prompting price increase expectations. This improvement is not just in London, but is noted across the regions as buyers hunt out good property investment opportunities.
The RICS Survey predicts rent increases over the next 12 months of 4.5% in the office sector, 5.5% in the industrial/warehouse sector and by just over 3% in the retail sector. Capital values are expected to increase by around 5% in the office sector, 6% in the industrial sector and 3% in the retail sector.
RICS Survey contributor, Andrew Kilpatrick of Kilpatrick & Co said “The early increase in enquiries appears to have cooled slightly during March, but deals are still trickling through in all sectors of Swindon’s commercial property market. Work on the Regent Circus redevelopment site is progressing and the new 39,000 sq ft Waitrose supermarket in Wichelstowe opened in April, following on from the new 25,000 sq ft Morrisons in Eldene in February. Swindon has also seen recent investment deals on offices at Delta Business Park (31,000 sq ft), Lydiard Fields (26,853 sq ft) and in Royal Wootton Bassett. (23,500 sq ft).”
