A commercial property survey, conducted by the Royal Institute of Chartered Surveyors (RICS) has shown how the market is struggling owing to a change in consumer habits and political uncertainty.
However, the survey also showed how the industrial sector showed a string performance over the last quarter of 2018. Given this sustained growth, it comes as no surprise that the availability of industrial space has fallen, a trend which can be tracked back over the past 26 quarters.
In light of the decline in retail premises and, in a much smaller way, office premises, many larger property investment companies have started to trim back their expectations for rental growth.
Tarrant Parsons, RICS Economist, said: “The latest feedback suggests that the lack of clarity over the Brexit process remains a key factor weighing on the commercial property market, with potential occupiers adopting a wait-and-see approach before committing. This comes in addition to the ongoing structural changes which continue to take their toll on the retail sector, evidenced by the further rise in vacant space shown in Q4. On the flipside, the industrial sector, which is a clear beneficiary of the shift towards online shopping, continues attract solid demand growth from both investors and occupiers across all parts of the UK.”
