[1]Andrew Lloyd, managing director of Search Acumen [2], comments on the RICS Commercial Property Survey for Q4 2015 [3]:
“Q4 results from the RICS survey substantiate our view that the commercial property market will show resilience in the face of the predicted slowdown in emerging markets in 2016.
“The demand and push for greater commercial activity remains strong, with Lloyds[1] [4] having made the biggest commercial property loan since the recession at the beginning of January 2016. British companies are also optimistic and expect more commercial activity to increase over the next year[2] [5].
“However, supply remains a key issue: the capital is facing more rent increases in 2016 with office vacancy rates hitting a 15-year low[3] [6] and new investor favourites like Cardiff, require a lot more high quality office space than is currently in the pipeline; its grade A space already expected to be fully let by early 2016 [7].
“A steady stream of deals is likely to keep commercial property lawyers busy in early 2016. Sorting out the backend to be as efficient as possible, however, could differentiate the haves from the have-nots for the rest of the year.”
[1] [8] Lloyds steps up commercial property lending (FT)
[2] [9] A separate survey carried out by the Confederation of British Industry and accountancy firm PwC showed 45% of financial services firms reported an increase in business levels in the three months to December [10], while 30% of companies expect activity to increase over the next
[3] [11] Central London office vacancy rates fall to a 15 year low (BNP Paribas)