My subscription
...
Filters
My Subscription All Publications

RICS Commercial Property Market Survey (Q1)

The latest RICS survey showed that office and retail occupier activity improved significantly in Q1 and that respondents were more positive about the prospects for property over the next 12 months. But the economic environment has deteriorated since then, dampening prospects for the sector.
Pieter Du Preez Property Economist
Continue reading

More from UK Commercial Property

UK Commercial Property Update

Student accommodation rent growth to stay solid

Student enrolment remained robust during the last couple of years and is likely to continue growing strongly over the next decade. But supply of purpose-built beds has grown less rapidly and the pipeline points to a continued lag against demand. This demand-supply imbalance will likely support solid rent growth over the coming years.

24 June 2022

UK Commercial Property Chart Book

Signs of a slowdown emerging

Annual all-property rental growth reached a five-year high in May, while returns rose to levels last seen in mid-1994. But signs of a slowdown also emerged, especially in the red-hot industrial sector, where capital value growth and total returns eased for the first time in almost two years. In addition, the recovery in retail and offices lost some steam, with monthly rental growth rates nudging lower. We expect the pace of growth will let up soon as yields start to stabilise and structural changes weigh on occupier demand. As such, we expect returns to cool to below 10% by end-2022.

22 June 2022

UK Commercial Property Update

Will Manchester office rental growth outperform again?

After a more severe downturn in 2020, Manchester office rental growth has caught up with other regional cities in recent quarters. While employment growth and occupier activity may remain fairly weak, tight new supply dynamics should see Manchester office rents rising broadly in line with the average of other regional offices over the short term.

17 June 2022

More from Pieter Du Preez

UK Commercial Property Chart Book

Retail yield compression surprises in March

The latest monthly MSCI figures indicate that commercial property is holding up well. Rental growth rose further in March, while annual total returns matched July 2010 levels, which were the highest since Q3 1994. Industrial continues to be the driving force, but retail is also delivering a handy contribution. But we expect the current pace of growth will cool down as structural change weighs on occupier demand and yields stabilise. We therefore expect annual total returns to slow to 8-9% by end-2022.

22 April 2022

UK Commercial Property Update

Pandemic provides a boost to life sciences centres

Investor interest in the life sciences sector has jumped since the onset of the pandemic. Increased investment and employment opportunities are expected to continue to support demand for related office space, with UK centres, notably Oxford and Cambridge, likely to benefit.

14 April 2022

UK Commercial Property Update

How worried should property be about higher rates?

Rising interest rates have put the outlook for property prices back under the spotlight. But, with lending practices much more restrained in this cycle and the market level loan-to-value ratio well below 50%, we don’t feel overly concerned at the prospect of a repeat of the last cycle. That being said, we continue to think that rising interest rates will limit capital value growth over the coming years.

7 April 2022
↑ Back to top