Commercial Property in demand
According to the latest Royal Institution of Chartered Surveyors (RICS) Commercial Market Survey, the demand for commercial property across the UK now stands at its highest in over 17 years.
Since the turn of the year there has been a rise in demand for office space, however availability has fallen, meaning that a rise in rents is likely.
Where are businesses to turn to next? Nick Harrop of Hitchcock Wright & Partners believes that business bosses may turn to industrial space.
Industrial space becomes a viable option
Harrop writes that many businesses, especially in the North West, have already made the move and are reaping the benefits. They are helping turn neglected brownfield sites into some of the UK’s most creative quarters.
Industrial buildings in Liverpool have been transformed by the likes of Camp and Furnace into bar and event space. Other buildings house creative and digital businesses including app developers, communication agencies and web designers.
Brownfield sites boosting economy
A report produced last year found that businesses based in Baltic Creative, a renovated industrial site, contribute over £1.4m to the city’s economy.
The appeal of industrial buildings is far reaching and constantly growing, especially consider the increasing rental gap between office space and high-specification industrial. With rents expected to rise in the office market, Harrop believes that there is a window of opportunity for industrial property developers.
Soon, he believes that industrial developments will be embraced as part of the wider spectrum of property solutions and said that the boundary between office space and industrial space is becoming more blurred.
Development Specialist Richard Carr believes that this was always going to be the case with so much ‘permitted development’ of offices to residential. He predicts that it will spur on the use of other space and also stimulate the new build office market.
It’s a good sign and shows that the UK economy is booming!