With the doom and gloom in the economy ever-present in everyone’s minds, it is nice to see how the commercial property market is coping and hopefully growing. With this in mind, MOVEHUT has compiled a summary from a report published by GVA, which demonstrates how the commercial property market has performed so far this year, and what growth we can expect to see.
Last year was a tough year for the commercial property market, with new developments at the low levels last seen in 2007. But this year, GVA predict that the market should grow around 3.0 per cent over the next five years. 2012 is key to the growth of the market. With the Olympics just around the corner, many developments are being rushed through so they are ready in time for the Opening Ceremony.
Rental values remained stagnant in 2011, with just a 0.1 per cent rise, but predictions for 2012 are much more optimistic, with rental values rising by 1.2 per cent according to GVA.
Last year, London was the only city to see rental values above the inflation level in two years. Time may be up for this increase, but London should continue to thrive in the commercial property market anyhow, given the Olympics are there – bringing greater employment opportunities.
Outside of London, the High Street suffered a tough year last year, with many companies entering administration – some were saved, but others were not so lucky. This left behind rows of boarded up shops which, without Government intervention, is only set to get worse.
2012 isn’t looking much more optimistic than last year for the High Street, as many retailers continue to struggle to survive. But elsewhere, the distribution market will continue to grow as internet sales continue to rise, due to people choosing to shop online rather than venture outside.
The commercial property market in Warrington grew by 63 per cent in 2011, with 212,491 sq ft of properties taken up. This was an increase of 38.8 per cent from 2010, and the market is only set get stronger for Warrington as developers and landlords seek to take advantage of the market growth.
Speaking of commercial property market growth for Warrington, Chris Cheap, a Director at GVA, stated: “Warrington remains the north west’s number one decentralised office location due to its strategic geographical location and access to a wide and diverse labour pool. 
“With higher than expected levels of stock absorption in 2011, we expect to see more design and build activity in 2012 as savvy occupiers with larger requirements realise there is insufficient quality existing office product in the market place.”
