Sustained demand for commercial property provides economic encouragement

A SURGE in investment and tenant demand in the commercial sector means that the Yorkshire and Humber economy is growing stronger, the latest property market survey from RICS has said.

Sustained demand for commercial property now stands at its highest since 1998 according to the Royal Institution of Chartered Surveyors.

In the first quarter of 2015, Yorkshire and the Humber saw a “significant” increase in demand for office space, which has been escalating since 2012.

22% more surveyors in the region saw a fall in availabilty, with one in four expecting rents to rise over the next three months.

Graeme Haigh of Bramleys LLP in West Yorkshire said: “We’ve seen more activity but no sign of any significant price push and a shortage of supply of good quality units in most sectors is emerging.

“This may push up prices for the better quality stock in the coming months.”

Simon Rubinsohn, RICS chief economist, added: “The strength of the latest commercial property survey suggests that the underlying momentum of the economy will continue to accelerate through the course of this year.

“What is particularly encouraging is that a better tone to the results is visible in all parts of the country and increasingly in secondary as well as prime space.

“Given that these indicators have historically provided a strong steer as to the performance of the economy two to three quarters out, it is hard not to be encouraged by the conclusions of this report.”