The latest RICS Commercial Property Market Survey for Q2, 2017 reports flat occupier demand across all three main sectors of the UK commercial property market in Q2, 2017, with the only growth being seen in the industrial/distribution sector. The amount of retail space available on the market has risen for the second consecutive quarter, whilst the supply of offices is static and with falling availability in the industrial sector.
In the investment market, the RICS Survey reports a continuing increase in demand, albeit at a slower pace than earlier in the year and a continuing reduction in the supply of investment property on the market. The RICS Survey says respondents frequently mention political uncertainty as an impediment to market activity, but 83% of respondents have seen no evidence of businesses looking to relocate as a result of Brexit, whereas only 17% have.
RICS Survey contributor Andrew Kilpatrick of Kilpatrick & Co said “Market activity in Swindon appears to be more subdued since the General Election as the continuing political uncertainty is factored into business’s decision making, whether for expansion or relocation. How the market will perform for the rest of 2017 remains to be seen, but take-up is expected to be down on 2016’s. Swindon’s snippets of good news include Wilko’s taking 21,000 sq ft of retail space in the town centre, vacated by British Home Stores and Honda’s commitment to a new 400,000 sq ft distribution warehouse at South Marston”.
