The latest RICS Commercial Market Survey for Q3, 2015, reports that rents and capital values are expected to rise firmly for at least another year, thanks to a healthy rate of demand growth from both occupiers and investors and reducing property availability. The office and industrial/distribution sectors are showing greater growth than the retail sector.
However, the rate of increase in Q3 has cooled slightly from earlier in the year. The permitted development rights, allowing conversion of offices into residential without formal planning consent are continuing to have a impact on the market, particularly in London and the South East, where available office space is decreasing notably.
RICS Survey contributor, Andrew Kilpatrick, of Kilpatrick & Co. said “The enquiries bounce-back after the summer holiday lull has been a little patchy, possibly due to property shortages, particularly in Swindon’s office sector, but possibly a sign of more caution and less confidence in the economic outlook. There are still many vacant shops in Swindon Town Centre, but hopefully temporary Christmas traders will fill up the town centre for a while.
“Elsewhere, recent major deals include the sale of 96 acres for a new distribution park alongside the A420 to the east of Swindon, opening up new significant distribution building development opportunity currently rare along the M4 corridor, with the land availability hopefully attracting new business to Swindon.”
