UK commercial property availability declines at the fastest pace ever seen | 5 August 2014
The amount of UK commercial property available in Q2 2014 has fallen at the fastest rate since the Royal Institution of Chartered Surveyors’ (RICS) index began.
A lack of prime lots means investors are turning to Grade B spaces instead, reports propertywire.com. The availability decline is partly blamed on the rising number of offices being converted into residential properties – a trend which is parti cularly prominent in London and the south of England.
According to RICS, many of its members in the south claim to have seen a number of commercial spaces being sold with permission to convert them into residential properties – 75 per cent said that this practice has impacted availability. This comes at a time when demand for commercial space is on the rise, reports westernmorningnews.co.uk.
Simon Rubinsohn, RICS’ chief economist, said that the lack of property could prove to be a problem for businesses looking to expand.
“The latest results provide clear evidence that the economic recovery is broadening out across the country with rising employment increasing the demand for space in all sectors of the market,” he explained.
“Meanwhile, the pressure in the office sector is being exacerbated by the gradual conversion of some secondary space into residential.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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