The latest RICS Commercial Market Survey, for Q1 2010, reports that lettings activity for business property continued to pick up in Q1, 2010, albeit at a marginally slower rate than was evident in Q4, 2009. However, available space for occupation continues to increase nationally, albeit at a slower pace than seen in the last quarter. This seemed to be driven by a slowdown in the reported increases in available space in both the retail and industrial markets outside London. However, available office space in the regions continues to rise at a broadly similar pace to Q4. The Survey also reports a slowdown in the rate of increase of inducements being offered by landlords to secure a letting across all regions and sectors, commensurate with the improved letting conditions spreading across the regions. RICS surveyors are expecting rents to pick up next quarter for office property in central and greater London, which is the first anticipated increase in rents for over 2 years. Outside London, the rental expectations continue to decline, but the mood is generally less pessimistic across all sectors. Investment demand rose at a slightly slower pace than in Q4 2009 due to a general slowdown in activity across all sectors in regions outside London.

RICS Survey contributor, Andrew Kilpatrick, Partner of Thompsons, reports on the Swindon property market:- “There has been a definite improvement in enquiry levels across all three main sectors of the Swindon commercial market since the start of 2010. Whether this is sustainable and will translate in a greater volume of sales or lettings remains to be seen, but at least there are encouraging signs, albeit market conditions remain highly competitive and challenging. Swindon is still trying to bring forward long term improvements to the town centre, such as the proposed redevelopment of the former Swindon College site in Regents Circus, which is back on the agenda, with demolition of the existing vandalised buildings promised for this year, to be followed by development for a Morrisons supermarket, cinema and restaurants next year”.

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