Office space squeeze in London
More from RICS today. The institute’s Commercial Property Survey for Q1 2010 says rental expectations for office space to let in central London have risen dramatically, as available space has declined for the second quarter in a row.
RICS says that the positive net balance of 57% for central London office property in Q1 2010 was the biggest upward jump on record, from the previous quarter’s reading of zero. “This contrasts with the picture in the rest of the UK where available space is rising across all sectors and rental expectations are still negative,” RICS noted.
Lettings activity in the office and industrial sectors picked up during the quarter, RICS said, although investment demand moderated somewhat outside the capital. The retail sector, however, remained weak, particularly in London where rising available space continues to dampen rental expectations, the institute noted.
The survey, which contains comments from regional surveyors, showed that confidence in the outlook for lettings has increased overall, RICS says, but sentiment was slightly less buoyant than at the end of the fourth quarter of 2009. And some of those questioned were concerned about the impact of mooted public-sector employment cuts following the General Election on regional lettings activity.
