What is the Outlook for the Commercial Property Market?
4th April 2013
As a practice, we are the busiest we have been in a long time and talking to my peers in other practices, they are saying the same, so I can only draw from that that the occupier market is beginning to move with a renewed vigor.
What we are experiencing is that high quality stock tends to move very quickly and for good money, whereas tertiary stock from any sector remains a challenge unless it is very cheaply priced. Presentation is everything in the office market – if it doesn’t look right an occupier can walk away, safe in the knowledge that they can take their pick of any number of buildings that have been refurbished.
In particular, we are seeing a surge of interest in large, high quality offices on the motorway corridor; a number of the bigger corporate occupiers are no longer sitting on their hands and are beginning to test the water with regards to upgrading their real estate. There is a lack of available stock and the owners of it are sensing that the balance of power is beginning to shift back in their favour.
My advice to an occupier is to seize the moment; the bottom of the market has been and gone and prices will start to escalate as the lack of supply of good quality space becomes ever more apparent.