Commercial Property market strengthens
The latest published RICS UK Commercial Property Market Survey for Q2 2014 states that performance continues to strengthen both on the occupier and investment side of the market.
Growth in tenant demand remains firm at the all property level and across each sector with industrial property segment exhibiting the strongest results. Alongside this availability seems to be contracting at the fastest pace on record with office property and industrial property sectors accounting for the bulk of this trend. The value of incentive packages continues to fall marking the fourth period in succession in which decline has been reported.
Against this backdrop rental income expectations picked up further suggesting gains will accelerate in the near term. From a regional perspective demand now appears to be rising quuickest in the broad regions of midlands/Wales and in the north than in London and the south east. Thirty eight percent of respondents report an increase in speculative property development over the last 12 months which may help to ease supply pressures in the longer term. Investment market enquries continue to build at a healthy rate and this is expected to translate into further meaningful growth in completed transactions going forward. The prospects of a robust capital value growth are also becoming increasingly wide spread with a pace gains anticipated to pick up materially in the north of the country.
Locally the commercial property market in Peterborough has seen significant positive movement with now a shortage of good quality office space. The commercial property market in Cambridge shows little sign of slowing down and our two other office locations of Huntingdon and Bury St Edmunds are reporting similar trends.