Commercial property demand fell in the last quarter, but this will not be a permanent trend, it is claimed.
The recent fall experienced in commercial property demand is not a permanent trend and is simply the sector pausing for breath.
This is the view of consultancy Knight Frank, which believes that that the decline was to be anticipated due to the sheer number of large
property investment deals that had been completed in previous months.
After high levels of take up in the City of London from the end of 2009 to early 2010, the market will naturally need to slowdown and regroup, according to the head of central London research at the firm James Roberts.
He went on to say that it is far too early to say whether the uncertainty that has crept back into the economy is having an affect on the
commercial development sector.
"Usually with commercial property there is about a six month time lag between something happening in the economy and it filtering through to the office market," Mr James explained.
Recent data from the Royal Institution of Chartered Surveyors indicated that seven per cent more of its members reported a fall rather than a rise in demand for commercial property in the second quarter of 2010.
Posted by Lisa Fear.
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