Search
 

Business Reaps The Benefits of a Weak Rental Market

LONDON-Research by the RICS points to a UK business community that is taking advantage of low rents and is moving offices. As a result, rents are stabilising after their downward slide

By Charlie Jacoby | Updated on July 16, 2003

LONDON-The Royal Institution of Chartered Surveyors (RICS) says that business is reaping the benefits of a weak property market. In its Commercial Property Survey Quarter Two 2003 , the RICS says that the UK property market remains favourable to tenants despite signs that the downward trend landlords have experienced over the last three years may have turned a corner.

The most encouraging sign of improvement is that demand in the London office market, which has been in tailspin for between two and three years, is stabilising. The RICS acknowledges that it has been a grim time for commercial property, with confidence and demand in continual decline and this has not abated in quarter two, although the deterioration is less pronounced.

Nor has the end of the war with Iraq prevented further falls in take-up of floor space. Businesses remain discouraged from expansion by the lacklustre economic climate. New business enquiries for commercial property fell for a fifth consecutive quarter, although by less than the early part of the year. 12% of surveyors reported falls in new enquiries compared to 19% in quarter one.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.