Demand for industrial, office and retail spaces still dropping

SURVEYORS in Wales remain cautious on the performance of the commercial property sector with concerns over the economy driving a fall in occupier demand.

- SION BARRY Business editor

According to the latest commercial property monitor from the Royal Institution of Chartered Surveyors (RICS), a net balance of minus 16% of Welsh surveyors reported a fall in overall occupier demand in the third quarter (Q3) of this year - down from minus 13% in Q2.

Demand for industrial space fell flat for the second consecutive quarter, with the net balances for retail and office space minus 22% and minus 25% respectively.

Moreover, a net balance of minus 23% of surveyors reported a decline in investment enquiries at all sector level (down from minus 18% in Q2).

Demand from investors for both retail and office space fell (net balances of minus 25% and minus 44% respectively), while investor demand for industrial space fell flat.

With regard to rental expectations, surveyors expect rents will rise over the next three months, but only marginally with a net balance of 6%.