The latest RICS Commercial Market Survey for Q4 2019 has just been published, reporting an expected modest increase in rents and prices across the year ahead, with the commercial property market predicted to pick up as a result of the lifting of the Brexit stalemate. Only in the retail sector is the downturn expected to continue.
Demand for retail space continues fall, whereas in the Industrial sector, demand rose to + 17% from + 9%, whilst demand for office space remains static. The amount of available space on the market is static in the Office sector, fell in the Industrial sector and continues to increase in the Retail sector, with incentive packages increasing, particularly in the retail sector, but also in the office sector.
In the investment sector the RICS Survey reports generally static demand for office and industrial investment properties, but a sharp fall in demand for retail investments.
RICS Survey contributor, Andrew Kilpatrick of Kilpatrick & Co said “Swindon’s commercial market remained subdued at the end of 2019, reflecting the lack of business confidence in the face of continuing political uncertainty. Hopefully once the election is out of the way we may have better political certainty, which will encourage business confidence and restore confidence in the commercial property market.”