Recovery in the commercial property market creeps from London to the regions – report
The recovery in the commercial property market is moving out of London and spreading across the regions, according to the RICS Commercial Market Survey for Quarter 1 of 2014.
And as demand increases, so will commercial rents, while tenant inducement packages will start to dwindle, according to the report.
The report predicts rent increases over the next 12 months of 4.5 percent in the office sector, 5.5 percent in the industrial/warehouse sector, and by just over three percent in the retail sector.
Capital values are expected to increase by around five percent in the office sector, six percent in the industrial sector and three percent in the retail sector.
Survey contributor Andrew Kilpatrick, of Kilpatrick & Co of Swindon, said: “The early increase in enquiries appears to have cooled slightly during March, but deals are still trickling through in all sectors of Swindon’s commercial property market.
“Work on the Regent Circus redevelopment site is progressing and the new 39,000 sq ft Waitrose supermarket in Wichelstowe opened in April, following on from the new 25,000 sq ft Morrisons in Eldene in February.
“Swindon has also seen recent investment deals on offices at Delta Business Park (31,000 sq ft), Lydiard Fields (26,853 sq ft) and in Royal Wootton Bassett. (23,500 sq ft).”