The latest RICS Commercial Market Survey for Q2 2018, reports continuing strife in the retail sector, with the supply of available shops increasing in the face of reduced demand, pushing landlords into having to offer increased incentive packages to attract new tenants. In the office sector, following on from a slight increase in Q1, demand was generally static in Q2. Offices supply also remained static in Q2. In the industrial sector, the Survey reports solid demand from both occupiers and investors and a continuing fall in supply/availability, leading to rent increases and reduced incentives.
In the investment market, the RICS Survey reports demand softening, largely due to a noticeable fall in demand for retail assets. Interest in industrial assets continues to rise, but at a slower pace than previously, possibly affected by a lack of supply.
RICS Survey contributor, Andrew Kilpatrick of Kilpatrick & Co, said ‘Despite the distraction of a long hot summer and the World Cup, deals are still happening in the Swindon market, even in the retail sector. Poundstretcher have taken a double unit at 18/19 Regent Street, whilst Poundworld have taken a large unit next to Iceland overlooking Havelock Square. Inward investment has been boosted by the news that North Star Leisure Scheme has secured 50% of pre lets for 250,000 sq ft of leisure and retail space, anchored by 180,000 sq ft snow centre and 13 screen cinema’.
