Businesses across the country are slowly looking to expand by taking on more premises in which to house their operations, according to the latest RICS Commercial Market Survey.
Interest from would-be tenants of shops, offices and factories saw a rise during the run up to summer with a net balance of 15% more surveyors reporting increases in demand. While the lion’s share of this growth was seen in London, all areas of the country saw something of an uplift. Although activity is still subdued at a headline level, the results of the latest RICS report are consistent with the signs of recovery that has been visible in much other recent economic news flow.
In tandem with rising demand, the amount of available property dipped slightly which, in turn, led to expectations for future rents stabilising. Since 2008, predictions for the amount of rent business premises will generate has been very much in the doldrums so this could be a further sign that a corner is slowly being turned.
Significantly, it would also seem that the amount of newly built commercial premises is beginning to stabilise. As with rental values, the downturn saw construction levels drop considerably yet no notable falls have been evident for some time – the amount of office space built last quarter even rose.
To find out what this means for your business call Andrew Challinor at Challinor & Co on Tel: 01780 767365.