Key findings
- The commercial property market in London continues to show a more positive picture than the rest of the UK.
- Meanwhile, the office sector outperforms the industrial and retail sectors in both occupier and investment markets.
- Critically, the outlook for capital values and rents is still negative in both the industrial and retail sectors and in all regions outside of the capital.
- New development starts of offices begin to rise but continue to fall for retail and industrial space.
- Investment demand rises at a faster pace nationally, especially for offices.
- Surveyors see the greatest volume of available investment funds for London offices; yields decline further.
- At a national level, tenant demand rises for the third consecutive quarter but improvement remains modest.
Commenting, Simon Rubinsohn, RICS chief economist said:
"Once again, the results of the UK Commercial Survey show a stark regional divide with sentiment in London generally more upbeat that elsewhere around the country. Moreover, within the capital it is the office sector which has enjoyed the most pronounced recovery. Significantly, the results of the Q2 report provide little reason to believe that this improvement in London will fan out to other parts of the UK in the near term''
