During a general business networking event this morning quite a few people suggested to me that the commercial property market must be quite difficult at present, with little demand for space. My response surprised quite a few of them so I thought I would share it here:- There is no denying that decision making is much slower and general business confidence seems lower than 12 months ago. As an agent, this means deals are harder to agree and then take more time to complete. Despite this, there is still a good level of demand, particularly for 1) industrial property 2) out of town offices and 3) neighbourhood retail. In fact, the last few months have been so busy with these sectors, that we barely have any stock remaining to match the requirements we continue to receive. We have completed more office deals in the last few months than we would have done in any pre-pandemic year. In addition we still turn away 5 - 10 enquiries a week for small industrial units because we simply don't have them available. So yes it's not easy, but our experience locally is that there are still plenty of businesses looking to move. We just need more options to offer them! I'd be interested to hear other people's thoughts on the current state of the market, so please let me know your thoughts in the comments. #commercialproperty
Maybe I don’t have the broadest of view as my need is quite specific. But I have had huge issue with supply of units and landlords willing to perhaps look at different tenants/busineses. Just my experience.
Agreed.I happen to be doing a lot of mortgages for pubs right now.
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3moIt’s insightful to hear how, despite a slowdown in decision-making and lower general confidence, demand remains strong in specific sectors. Your experience shows that sectors like industrial, out-of-town offices, and neighbourhood retail are particularly active. What strategies do you find most effective for adapting to these market conditions and meeting demand with limited stock?