Monday 19th November 2018
Home General Business News Demand for industrial space in the region hots up as office sector ‘flattens’

Demand for industrial space in the region hots up as office sector ‘flattens’

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Demand for industrial property in the East of England is rising sharply and is ‘moderately positive’ for retail space although it has ‘flattened’ in the office sector, says the latest RICS UK commercial property market survey for the fourth quarter. In the industrial sector, 21 per cent more agents reported higher demand and rents are expected to increase in the near-term and strongly over the next year.  Rents for office and retail space are expected to be flat in the near term but rise strongly over the next 12 months.

Meanwhile, 22 per cent more agents in the East had seen an increase in enquiries from investors, particularly for industrial space. Some 41 per cent of respondents in the East expect capital value gains in the industrial sector - where availability has been falling - in the near term but values are also expected to rise in the office and retail sector. Overall, some 69 per cent of respondents saw the market as fair value and 19 per cent viewed it as overpriced.

Simon Rubinsohn, RICS chief economist, pointed to the 'weakish' tone to the survey results for the retail sector. But he added: “…. The counterpart to this is the ongoing strength in demand for well-located warehouses to support the inexorable rise of the online consumer. Meanwhile in the office sector, the resilience of the headline rent indicator is masking the increasingly attractive inducement packages required to encourage take up of space.”