News & Updates From The Commercial Property Market
The commercial property market is dynamic and ever changing, and in this article we will keep you up to date with some of the latest trends and movements from the end of 2013 and the beginning of 2014.
According to a report from the Local Data Company (LDC), shop vacancy rates were reduced to below 13.9% for the first time since the summer of 2010. Compared to last February’s figure of 14.6%, this is an improvement of 7%.
However, it could be argued that this doesn’t represent the whole of the UK – with the North-West and North-East harbouring much higher vacancy rates. According to The Guardian, “when all high street businesses are included, such as cafes, betting shops and hairdressers, the north-west has the highest proportion of vacancies, at 17.3%, way ahead of the national average of 12.2%.”
As should be expected, London has been the best performing area, as vacancy rates sit at just 8.1%.
A Strengthening Market?
According to a report by British Land (http://www.britishland.com/), the commercial property market in Britain is strengthening, especially in the South East. Not only is London seeing the benefit, but British Land suggests that the increased investment is filtering out into regional markets.
Looking at Manchester as one example, the Manchester Evening News reports that “overall take-up of commercial property for the whole of 2013 was around 890,000 sq ft – 13 per cent higher than the figure of 770,000 sq ft in 2012.” According to the same findings, the residential property market is also recovering, with a 1.8% rise in average house price over 2012.
The Royal Institution of Chartered Surveyors also released a report at the end of 2013, which outlined the strong performance of the commercial property market. In their study, they highlight a massive reading on strength of demand, the highest since 1998. RICS also sited an increase in rent expectations and an improved interest in property investment.
The Telegraph is also reporting encouraging signs in the commercial property market, citing findings by Equilibrium Asset Management and Aviva, the former suggesting that UK commercial property will return over 12% this year. Aviva have predicted a ‘very strong’ performance.
The commercial property market goes hand in hand with the success of businesses, and many reports are suggesting that output for businesses in Britain is at its highest since 2007. According to CBI, last year (2013) showed the strongest UK-wide growth since before the recession, and the general outlook looks good for this year.
The improvements to the wider economy are encouraging, and will continue to positively impact the commercial property market.
For more information about the commercial property services that we offer here at Marriotts, get in touch by calling:
Oxford – (01865) 316311
Bicester – (01869) 360463
Alternatively, you can contact us online today.