West Midlands sees an increased demand for office space
The West Midlands is experiencing an increase in demand for commercial property according to a Royal Institution of Chartered Surveyors (RICS) survey.
The rise was recorded in the final quarter of 2009, with the office space market performing particularly well, industrial property doing well, and the retail market not so well.
In the West Midlands those surveyors questioned reported a rise in office space demand by 16% in the fourth quarter of 2009. This represents the first time there has been an improvement in the market for over 2 years.
This increase comes just as the country begins to come out of recession and demand for office space begins to increase. This increase in demand is also coupled with a lack of supply due to many developments being postponed over the last 2 years.
This surplus of supply inevitably increases letting rates, with forecasts predicting steady growth, further fuelling construction and the local economy as a whole.
Mark Swallow, spokesman for RICS West Midlands and head of Knight Frank’s Birmingham office, said: “With regards to the West Midlands’ core office market, it has fared better than expected during 2009, seeing a significant increase in transactions with more occupiers taking advantage of competitive deals.”
He concluded: “Looking forward, while deals are getting harder and the forthcoming general election may reduce government and public body interest which was enjoyed in 2009, as supply decreases the pressure on landlords to provide ‘freebies’ will be reduced slowly bringing the market back to the middle.”