RICS Conducted a Survey on UK Commercial Property

Recent report showed that the tenants demand in the sector of commercial buy to let property in the UK is decreasing, while the supply is expected to speed up, thus causing rental rates to decline. The survey, conducted by the Royal Institution of Chartered Surveyors (RICS) demonstrated that 40% of surveyors reported a fall in the tenant demand in the first three months of 2009; however, this figure has eased compared to 71% in the last quarter of 2008. Oliver Gilmartin, RICS senior economist said that said that although the figures have moved from the historic lows, they still show that the commercial property market continues to deteriorate as the majority of companies remain in a consolidation mode. RICS also reported that the number of surveyors reporting a rise in vacant commercial property spaces rose at a fastest pace in the 11-year history of RICS surveys – from 57% in the last quarter of 2008 to 65% in the first quarter of 2009. The continuous economic crisis made the vast majority of surveyors express pessimistic views on the future of property rent rates with 80% expecting them to fall, compared to 71% in the previous quarter. The report also demonstrated that the prospects of lease are poor as 38% of surveyors marked a decrease in enquiries for business spaces.