The survey shows an overall balance of plus 19 per cent of companiesincreasedtheir property holdings over the past six months. This marks a significantturnaround since the first half of 2003 when a balance of five per cent ofcompanies decreased their property holdings. Companies expect a similarlevelof demand over the next six months, predicting an above average balance ofplus17 per cent.

Occupier demand for office space improved significantly over the last sixmonths. A balance of plus 11 per cent of companies reported an increase inoffice holdings, rising from a neutral balance in the previous survey. Theretail sector also saw holdings increase considerably, with demand rising byabalance of plus nine per cent, the highest figure for two years. But in the industrial market, although demand for distribution property increasedslightlyover the last six months, demand in the manufacturing sector was flat.

Occupier demand is expected to increase in every majorcommercial property sector over the next six months, with retailers the mostoptimistic. Demand is strongest in the retail sector where a balance of plus ten per cent of firms expect to increasetheir property holdings, marking a significant improvement since the previoussurveywhen demand was expected to be flat.