Commercial property outlook

We hope that 2010 will see us emerge from the economic gloom of the last 2 years and show some signs of improvement in the commercial property market.

The 3^rd and 4^th quarters of 2009 showed a gradual improvement in the uptake of Guildford offices although some other towns in the region have been less active. Town centre retail in Guildford has also proved popular, and if the Christmas and New Year sales figures prove to be as good as early reports suggest, this is likely to continue throughout 2010. The industrial property occupier market remains sluggish.

While interest rates stay low, property investments are likely to remain interesting to cash rich and overseas investors looking for good returns. The 2-tier market will probably continue with low yields expected to continue for good quality well-let property, and much higher returns expected for secondary investments.

The Government will try to provoke a “feel good factor” in the run up to the General Election, but in our experience elections have a tendency to slow up the market for a few weeks beforehand and afterwards while occupiers and investors take stock of predicted changes in taxes and in this case spending cuts.

If you are considering selling, letting, or acquiring offices, shops, industrial units or investments in 2010 please contact us for early advice.