The RICS Commercial Market Survey for Q4, 2013 reports continued improvement in commercial property demand, with demand rising for the 5th consecutive quarter and supply falling for the 3rd consecutive quarter.
Together, this is helping to support higher future rent expectations for commercial property. Even in the retail sector, conditions are improving with demand improving gradually since Q2, 2013 and available retail floorspace falling for the first time since 2004.
RICS Survey members are forecasting rent rises of 3% on offices, 5% on industrial and 2% on retail over the next 12 months.
In the investment market, the RICS Survey reports an increase in enquiry levels, with increased transaction numbers predicted for 2014, suggesting possible price increases.
Andrew Kilpatrick of Kilpatrick & Co, who contributes to the RICS Survey said “The improved enquiry levels of the Autumn have been converted into a number of new lettings in Swindon, including 150,000 sq ft of warehousing at Groundwell to Network Rail, new out of town office lettings at Delta and Windmill Hill and a 9,000 sq ft restaurant pre-letting to Pan Asian Kitchens at the new Regent Circus redevelopment. Work is also underway on the 30 shop extension to the Designer Outlet, Swindon. Hopefully, the gradual improvement will continue through 2014”.
