Commercial property for rent in London was among the best performing sectors, as uptake stabilised and lettings activity improved most when compared to retail investment property and industrial real estate, according to the Royal Institution of Chartered Surveyors (Rics).
It seems stakeholders agree the outlook for office buildings is improving, as sentiment was positive for the first time in three quarters, indicating owners and managers might be seeing a pick-up in the sector.
Indeed, pessimism related to this kind of commercial property for rent was the least negative it has been in three years, while tenant demand for retail investment property actually rose during the final months of 2010.
The figures show demand and supply could be increasingly closely aligned, as available space in commercial property seems to be stabilising, evidenced by just 4% more surveyors reporting an increase rather than a decrease of new premises on the market.
In terms of office investment property, change in availability was zero, the lowest it has been since the final quarter of 2007, which some could take as a sign of a move towards pre-recession activity.
Offices performed well in the fourth quarter of 2010 compared to the preceding three months, as July to September saw falling demand for business property to rent and the trend was particularly marked in this sector.
It was also the worst sub-section in terms of rental outlook in the third quarter of last year, with retail investment property and industrial buildings thought to offer better returns.
Current trends appear positive for commercial property and stakeholders may be looking for further improvement in the coming months, but Rics warns factors such as January's VAT hike and the impact of widespread spending cuts may yet depress activity. For the latest updates PRESS CTR + D or visit Stock Market news Today
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