The level of commercial property occupation in the UK has fallen for a third quarter in a row, according to a RICS report published today.
The RICS commercial property survey for the fourth quarter of 2001 also reveals that landlords are upping the value of incentives to encourage companies to take on leases.
Incentives on offer include rent-free periods and contributions to fit-out costs.
Overall, 43% of chartered surveyors in England and Wales reported a fall in occupation while only 5% reported a rise.
In the office market, 59% of surveyors reported a fall, while only 7% reported a rise.
Falling demand for industrial property was reported by 41% of surveyors, with 3% reporting a rise. Inducements in the industrial property sector rose for the first time since the survey began.
In the retail sector, fall in demand was reported by 33% of surveyors, while 4% reported a rise – a smaller fall in demand than was reported in other sectors, but still indicative of caution on retailers’ part.
A boom in consumer spending on durable goods benefited out-of-town warehouses, for which demand stabilised.
Surveyors’ optimism is at a seven-year low, with a rapid turnaround in demand seen as unlikely.
EGi News 22/01/02
