Activity on UK Commercial Property Market Grows Steadily

A survey of the UK commercial property market published last week by the Royal Institution of Chartered Surveyors showed the first rise in inquiries and lettings activity on the British commercial property market since the beginning of 2009. The survey also made it clear that the growth in market activity was led by London.
The number of RICS surveyors reporting an increase in inquiries changed from -3 in the 2nd quarter of 2009 to +11 in the 3rd quarter, while the number of surveyors reporting an increase in new lettings and sales grew to +8 in the 3rd quarter, up from -13 in the 2nd quarter. The survey revealed that tenant activity in London improved faster than in any other UK region as the sector of office rents has seen increased demand for the 2 consecutive quarters. Increased activity, according to the RICS survey, can also be seen in the southern England and the Midlands, where commercial property sector gained support from the weak pound.
In the opinion of RICS senior economist, Mr. Oliver Gilmartin, the results of the survey carried out by the organisation suggest that signs of economic recovery, seen all over the world in the past weeks, can now be found on the UK commercial property market, which is slowly but surely moving into the positive territory.
Mr. Gilmartin highlighted that the current improvements on the UK commercial property market led to an increase in consumer confidence in the past 3 months; he added that the length of lease declined over this period, meaning that firms now have a great opportunity to take up new agreements.
It has to be mentioned that the pick up on the UK commercial property market comes hand in hand with the recovery of the British residential property sector. However, industry experts take a cautious approach towards these improvements as their sustainability is still uncertain.