Business leaders from across the region found themselves in a ‘negative free zone’ when they joined commercial property agents London Clancy for their New Year’s reception.
The annual event gives an opportunity to catch-up and look ahead to the coming year.
Director Mark Clancy said despite the current economic difficulties and the forecasts for 2012, it was crucial to remain positive.
“There can be no doubt that market conditions will remain tough, but there are grounds for optimism, as the UK embraces the positivity of Olympic and national celebrations.
“For example, market activity within our region increased over the last twelve months with the take-up of industrial/warehousing space increasing by 10% and business space/office take-up rising by a staggering 83% over 2010 levels!
“Many well established companies have been expanding within our region such as Fluor moving into their new 210,000 sq ft HQ at Farnborough Business Park and the Co-op opening their new Southern England distribution centre at Andover Business Park.
“There are also many other examples of locally based companies, (Magma Global, Blatchfords, Computer 2000,Genesys Telecom……..) investing in the M3/M27 property markets and taking advantage of competitive terms whilst they last,” he said.
Mr Clancy made a number of predictions for 2012 including:
- stability for the industrial and warehouse property sector across our region – Grade A rental levels will be maintained at £9 per sq ft within the upper M3 corridor
- the office market is likely to see little change despite the improved take-up during 2011
town centre retail markets will remain under pressure during 2012, particularly in secondary areas - the investment market is likely to remain polarised with strong demand for well let prime opportunities and many secondary propositions still only able to achieve double digit yields
“Overall, 2012 will be a tough but successful year for the commercial property market in the M3 corridor as local businesses concentrate on their own markets and achievements against the wider and more uncertain macro-economic backdrop.
“It will be very much a year for focusing on the positives, celebrating successes, (including hopefully many Olympic medals) and of course taking the right specialist regional property advice,” he said.
