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    Home»Property»Commercial property optimism rising rapidly, says Propertymark
    Property

    Commercial property optimism rising rapidly, says Propertymark

    February 24, 20253 Mins Read


    There’s an increasing sense of optimism in the commercial sector, says Propertymark.

    The trade body’s latest data discovered that 83% of Propertymark’s members expect supply in the Land and Yards sector to increase, which represents a 33% boost from Q3 2024.

    Additionally, the body’s Q4 2024 Outlook found that 53% of commercial agents forecast Industrial Sector supply will increase, whereas this figure stood at 40% in Q3 2024.

    Finally, although 45% of Propertymark members see no upcoming changes to supply in the Office sector, nearly a third do at 27%. This represents a drop from Q3 of 2024 where 43% of agents forecast an increase in supply.

    Nathan Emerson, chief executive at Propertymark, says: “Although we have seen key aspects of the economy stabilise, the commercial property sector continues to face challenges, as many business sectors evolve to keep pace with ever-progressing trends and shifts in demand. 

    “The pubs and restaurants sector continues to witness a long-term transition in demand, with sustained dips in outlet numbers now apparent across many years. 

    “Likewise, evolutions in working practice have allowed many companies to reconsider the amount of physical office space needed operationally, and again we are seeing sustained change.

    “It’s positive to see a strong supply and demand within the land and yards sector, and high levels of confidence within the takeaways sector too.

    “As many towns and cities embark on substantial regeneration projects, there is huge potential in the medium and long term in delivering prolonged growth across many commercial channels and as time progresses, we expect to see a substantial keenness from many investors.” 

    Michael Sears, Commercial Advisory Panel Member and Propertymark Board Member, adds:  “We have witnessed the resurgence of brand enquiries in prime retail. Lots of these brands are the ‘new kids on the block’ – brands with great covenants and a significant number of branches in the UK already, but not necessarily as recognisable as those that have been here for a decade or more.

    “This is a necessary reminder of the fluctuation of the fortune of brands and that many new chains arrive on the scene at the same time as older ones either stagnate or are just not on a path of expansion.

    “The evidence of all this resurgence comes from the lets we are completing; the increasing number of enquiries and the ever-growing requirement lists from brand surveyors and agents both in-house and not.” 

    The full report can be read, here: Commercial Outlook Reports | Propertymark.



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