The Brexit vote has had a short term impact on confidence in the property market in general although the level of occupier demand remains strong in both the office and industrial sectors, says a business space review from Bidwells.
The property firm notes a mark down in capital values of some -2.8 per cent on the IPD monthly index but says this has had 'little if any support from transactional evidence'. It has seen some slowing in take-up in the first half, particularly in the office sector - with the exception of Norwich – partly due to a lack of available building for larger occupiers. Businesses needing over 50,000 sq ft are being forced to consider pre-lets.
But Bidwells says that prime office rents have remained ‘steady’ in most markets with the exception of Cambridge, where rents moved up to £36.50 per sq ft. Prime rents in the industrial sector have risen in all locations, up by an average of 8.8 per cent and secondary rents by 8.1 per cent, in the year to June.
Meanwhile, the firm highlights the appointment of consultants to look at improved road links between Oxford, Milton Keynes and Cambridge and talks to rebuild the outstanding section of the ‘varsity’ rail line between Oxbridge and Cambridge.