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Market confidence rising in commercial units
11:54am Tuesday 28th January 2014 in News
Confidence is on the up among commercial property experts, new findings show.
Research by chartered surveyors Eddisons, which has a Bradford operation, shows that 75 per cent of property professionals are more confident about market prospects than at the last review in 2012.
More than 65 per cent of respondents predicted an increase in occupier demand and 58 per cent expected rising pre-let activity.
John Padgett, Eddisons head of agency, said: “Today there are more cranes and scaffolding poles than the previous six years put together, demonstrating the emerging confidence.
“An increase in demand will see prices hardening in the short term along with a reduction in the incentives being offered, particularly on modern purpose built space, with resultant uplifts in rents.
“Demand is likely to manifest itself in a move towards Grade A space, which in turn will create a shortage. The reverse will be true of lower quality stock which is likely to come under pressure as occupiers demand better quality space.”
Three quarters of those questioned said the economy turned a major corner in 2013 with further improvement expected this year.
Banks were criticised by more than half of respondents for not lending enough to the sector and the Government was urged to change the business rates system amid concern over the postponement of the 2015 rating revaluation to 2017. This means businesses are still paying rates based on rents before the economic crash in 2008.
Eddisons Bradford office has agreed terms to let two more units to electrical supplies distributor Rexel Senate on the Fowler industrial estate off Wakefield Road. Eddisons acted on behalf of Brighouse Estate Pension Fund Ltd.
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