Experts report weaker demand for commercial property

Weaker demand for commercial property across all sectors has been reported in the RICS Commercial Market Survey for Q4 2011, according to one of the report´s contributors.

Andrew Kilpatrick, of Kilpatrick & Co in Swindon, also reports a rising supply of property available for sale or to let, producing the most negative outlook for the market since mid 2009.

Even the London office market shows occupier demand falling for the first time in eighteen months, according to the report. The fall in demand and the rising floorspace availability continues to impact on overall rental expectations across all sectors, whilst lease inducements showed an increase.

According to the report, much of the gloomier market sentiment was down to increasing uncertainty over economic prospects at home and abroad in Q4 2011. Meanwhile, development activity continued to be low and lower activity in the investment market is predicted for early 2012, reflecting the increasing economic uncertainty and continuing constraints on bank financing of property purchases.

Andrew (pictured centre) said: “The Eurozone crisis and general economic gloom is doing little to assist market confidence, in Swindon, or elsewhere and with growth forecasts trimmed back to under one percent for 2012, market conditions are likely to remain challenging for 2012.”