RICS survey flags concerns over the UK commercial property recovery

The RICS survey showed that occupier demand dropped back in Q3 as concerns over the economic outlook, uncertainty around the Budget and rising interests rates all sapped confidence. That has cut rental and capital value expectations, and investment enquires remain in the doldrums. We expect some of that gloom to lift as interest rates fall back and the economic outlook clarifies, but overall, it supports our call for a weak commercial property recovery over the next few quarters.