The latest published RICS Commercial Market Survey dated Q2 2013 shows a continuing improvement in the occupier market with tenant demand drifting upwards at the headline level and turning positive across all commercial property sectors for the first time in 2 years.
RICS Confirms Occupancy Improvement
Total availability of commercial property also contracted albeit only marginally for the first time in 6 years and the report adds that the previous upward trends and inducement packages being offered by commercial property landlords appears to have stabilised in response to market conditions.
Martin Hughes, Director of Barker Storey Matthews now part of Eddisons Peterborough office comments “this is certainly true in respect of offices in Peterborough as we have noticed a reduction in the availability of certain unit sizes. Rents have moved upwards and there has also been a rebound in capital values”.
Meanwhile the investment market continues to improve with investment enquiries increasing and with a larger net balance of surveyors now expecting an increase in investment transactions than at any time over the previous 2 years. Steve Hawkins of the Peterborough office adds “we are now in a situation where demand for investments outstrips supply across most sectors. This is due in part to the continuing low interest rate policy and investors getting little return on cash deposits but also as confidence has returned to the occupier market”.