Hellier Langston’s summary of the Royal Institution of Chartered Surveyors’ Q4 2023 report – with some local insight.

Staying informed about market trends and forecasts is crucial for making strategic decisions – never more so than in the case of the commercial property market. The latest insights from the Royal Institution of Chartered Surveyors (RICS) UK Commercial Property Monitor for Q4 2023 offer valuable perspectives on the current state of the market and its long-term outlook.

Growing Confidence Amidst Incremental Improvements

According to the report, there is a growing sense of confidence among respondents, with the largest share now believing that the market has reached the bottom of the current cycle. While the market continues to lack significant momentum, there are clear incremental improvements across the board.

Prime Property Outperforms Secondary Units

One notable trend highlighted in the report is the continued outperformance of prime property over secondary units. With footfall crucial for retail and rising energy costs, the location and relative energy efficiency of prime units are driving positive momentum in the market.

Regional Variations and Investment Demand

The report also sheds light on regional variations in the market, with London’s prime office and retail markets exhibiting stronger rental expectations compared to secondary office space. Additionally, industrial demand in the Midlands remains particularly strong.

Of course, Hellier Langston’s focus remains on the commercial sector in the South – predominantly in and around the M27 corridor. While it’s true that recent months have been some way from the peaks we have seen in terms of volume, particularly within Capital
Markets, there have been an encouraging number of completed and settled Agency and
Landlord & Tenant transactions across the industrial and office sectors indicating a
continued resilient market.
Recent activity includes: –
1. 121,000 – Warehouse Rent Review – Southampton
2. 8,200 sq.ft – Office Letting – Winchester
3. 22,000 sq.ft – Industrial Letting – Segensworth
4. 10,000 sq.ft – Industrial Letting – Portsmouth
5. 3,200 sq.ft – Industrial Letting – Havant
6. 8,000 sq.ft – Office Lettings – Whiteley
7. 21,600 sq.ft – Warehouse Lease Renewal – Portsmouth
8. 8,000 sq.ft Office Rent Review – Ringwood
Whether you are a landlord, tenant, owner occupier, or developer, Hellier Langston are well
positioned to provide expert advice and guidance.

Looking Ahead: Cautious Optimism

Despite the challenges facing the commercial property market, there are reasons for cautious optimism going forward. The significant turnaround in expectations for monetary policy, coupled with a more stable backdrop for credit conditions, provide hope for a more positive outlook in the coming quarters.

…the estate is on track to satisfy unsatisfied demand from local and regional businesses who have been limited by supply…

In conclusion, navigating the commercial property market requires a keen understanding of current trends and forecasts. By staying informed and adaptable, investors can position themselves for success in an ever-evolving landscape.