The latest RICS Commercial Property Market Survey for Q3, 2016 reports market confidence recovering after the deterioration seen during Q2, which reflected the immediate aftermath of the Brexit shock. Generally, occupier demand for commercial property recovered in Q3, with the industrial/distribution sector leading the way, ahead of offices and retail. Property supply available to the market continued to decline in Q3, particularly in the industrial/distribution sector, whereas supply in the office sector reduced more gradually and hardly at all in the retail sector, nationally. The RICS Survey reports investor confidence returning for investment property purchases in Q3 following a steep fall in Q2.
RICS Survey contributor, Andrew Kilpatrick of Kilpatrick & Co said “Swindon’s commercial market has had an active autumn once the Brexit shock dissipated and businesses have decided to generally get on with life. Demand for investment properties seems to have increased, thanks to poor returns on savings; Kilpatrick & Co have had a number of investments go to best bids and the supply of investment property is scarce. Occupier demand has held up in all 3 main sectors in Swindon & Wiltshire’s commercial market. Autumn has seen the completion of the largest office letting of the year, the 17,000 sq ft Isambard House, Churchward to Pets At Home, the largest investment deal, the 26,869 sq ft Washington House let to Openworld Holdings which sold for £6.25m to an overseas investor and the largest industrial deal, with the 216,000 sq ft former Triumph International building at Groundwell being sold to Howard Tenens.”