The latest Commercial Property Survey published by the RICS for Quarter 2 2009 reports that the fall in occupier demand for property is easing off, following on from 2 years of declining activity. The latest figures point to some stabilisation in occupier demand, particularly in the office sector. It suggests this may in part reflect modest improvements in business confidence, but may also be indicative of a greater use of break clauses and ongoing rationalisation of occupier's space requirements. The Survey says that whilst a return to growth in occupier demand may still require a sustained improvement in the economy, the level of enquiries and confidence is the least negative since the on-set of the downturn in mid 2007. The Survey also reports that the increase in floor space coming to the market rose less sharply than in Q1, 2009, where the increase was a record rise. The sharpest increases were recorded in the retail sector.

RICS Survey contributor, Andrew Kilpatrick of Thompsons said, “Whilst enquiries and activity levels are generally still slack in all 3 main sectors as Swindon's commercial property market, there is the occasional glimmer of brightness trickling through, with the office sector leading the way with take-up of some 48,000 sq ft to date in 2009. Unfortunately, one step forward is still being matched by two steps backwards, as new properties are released onto the market, adding to supply. However, for those companies who are able to take a longer term view, there seems to be increasing recognition that the current market conditions offer interesting opportunities to lease or buy new properties at relatively attractive prices or rents. However, whether this translates into greater demand and activity, remains to be seen in the light of continuing difficult economic conditions.”

Thompsons are chartered surveyors and commercial property specialists and Andrew Kilpatrick BSc FRICS ACIArb IRRV of Thompsons may be contacted at Istabraq House, 42-44 Commercial Road, Swindon, SN1 5NX. Tel: 01793 643101. Email: post@thompsons-cpc.co.uk. Thompsons are a part of the AICPC, a unique regional network of commercial property of independent commercial property surveyors covering the M4/M40/M5 corridors.

Copies of the RICS Commercial Market Survey may be obtained from the RICS on 020 7222 7000.

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