The recession in the commercial property market is officially over, with enquiries for business premises hitting a four-year high, according to a new report.
The research, conducted by the Royal Institution of Chartered Surveyors (RICS), found that 22 per cent more surveyors reported a rise in occupier enquiries than a fall, up nine per cent from the previous quarter.
A balance of plus 11 per cent of surveyors reported an increase in new sales and lettings to occupiers, up from four per cent.
The growth in demand for business property is now at its highest since 2000 and, according to RICS, marks an official end to the commercial property recession.
The market in London, also seen as a sensitive barometer of demand across the UK, improved dramatically, with a massive 83 per cent more surveyors reporting an increase in property demand than those reporting a fall – up from 62 per cent in the previous quarter.
Incentive packages, another good indicator of the market, stalled over the past three months, but have remained at a level favourable to tenants.
RICS said that entrepreneurs’ bargaining position could be weakened if the recovery continues, although not rapidly, as the increased demand has yet to eat into the amount of property already available.
Alan White, commercial property spokesman at RICS, said that the single most important driver for this growth is business confidence.
“Many companies had plans for expansion but put them on hold until they felt more optimistic about the economic environment at a global as well as local level.
“They are now implementing these plans, especially in central London, and it would seem reasonable that this growth will ripple out through the UK over the next year to 18 months,” he said.
