Britain's commercial property gap is 'closing'

Britain's commercial property gap is 'closing'
The gap in performance between London's commercial property investment market and other areas of Britain is starting to close, a commercial development expert has stated.

In the UK market, there are leaders and laggers, with London seeming to recover the fastest, before other areas begin to start their own recoveries, a representative from Savills has insisted.

Mat Oakley, director of commercial research at Savills, said: "If you are looking at the best regional office markets and the best regional retail markets then we are starting to see the beginnings of a pick-up in take-up.

"We are starting to see the beginnings of falls in availability and we are seeing some signs of upward pressure on rents."

Mr Oakley also noted that areas outside of London are now entering the first year of their recovery, as London enjoyed strong tenant demand in both the retail and office markets last year, while other areas did not see improvements to the same extent.

As well as this, the Savills property specialist remarked that the gap between London and other regions may be as wide as it was previously, yet it is not necessarily widening further.

While Mr Oakley suggests that the gap between London and the rest of the UK may be closing, a recent study has highlighted that a divide is still present.

The Royal Institution of Chartered Surveyors reported last month that London's commercial real estate strongly outperformed the rest of the UK in this year's second quarter.

Significant variety in the levels of available floor space across Britain indicated differing market conditions across the country.

In the capital, availability was stabilised at a net balance of plus two per cent, while it rose to plus 22 per cent in northern England, which was blamed on fewer organisations searching for space.

Posted by Hadji Singh ADNFCR-2843-ID-800652188-ADNFCR
Monday, 01 August 2011 00:00
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