The latest RICS Commercial Market Survey for Q2 2011 reports modest increases in commercial property occupier demand, but also a modest increase in the supply of commercial property available on the market.
Hence, no predictions of rental increases are noted. Instead, the expectation is for a further softening of rents. There is an exception to the generally flat market conditions, namely the London office market, where the Survey reports rapid growth in occupier demand, leading to surveyors predicting rental increases. Out of London, the supply of vacant properties is increasing, particularly in the retail sector and incentive packages offered by landlords to secure a tenant are continuing to edge up, albeit at the lowest rate since Q3, 2007. In the investment property sector, the RICS Survey reports demand continuing to edge up gradually, but with the London buoyancy influencing the picture.
RICS Market Survey contributor Andrew Kilpatrick of Kilpatrick & Co of says “While conditions across all 3 main sectors of Swindon’s commercial market remain challenging, Q2 has seen progress, with B&Q’s new 796,000 sq ft distribution warehouse completed ahead of schedule, BHS moving into their new 45,000 sq ft
department store in The Parade and a new drive thru Costa Coffee opening by Junction 16. Nearby, a 7.8 acre site, formerly occupied by Motorola, has been acquired by the Dick Lovett Group. All these deals show that Swindon is very much open for business.”