The UK commercial property market, despite being on its knees at some points, is hopeful it is now finally over the worst effects from the economic downturn suffered in 2007. The last few years have been a very troubling time for the British economy and as a result the commercial property market has been forced to re-evaluate some of its core beliefs.
Some believe that as a result of the three years of struggle, the commercial property market in the UK regions may well have changed forever.
Before the recession, commercial property landlords were sitting in a very comfortable position, they had a product, for which the demand was extremely high. Britain was experiencing boom years and practically everyone wanted to jump on the band wagon. Whilst many existing companies were expanding, a rapidly growing number of start up businesses were taking their first steps into the commercial property. Things really could not get any better for the market and everything in the commercial property house was rosy.
However, the picture today is very different, with great swathes of commercial property, built to feed the frenzy of the boom times, now lying empty, landlords are having to look into many different methods and make economies themselves in order to find tenants for their commercial property space. The Manchester Evening News, recently led with the headline, ‘Landlords Utilise Incentives In A Sluggish Market.’ With the article continuing, ‘commercial property landlords in the North West have increased the number of incentive packages to secure lettings as the market stalls.’
This feeling has been backed up by information from The Royal Institution of Chartered Surveyors (RICS), which has published a survey that has declared, the level of unoccupied space continued to rise during quarter 2 of this year.
At a time when supply is firmly outweighing demand, the commercial property market in the UK regions is yearning for more prosperous times.
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