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RICS Commercial Property Market Survey, Q2, 2020

The latest Commercial Property Market Survey published by the RICS for Q2 2020 unsurprisingly reports the retail and office sectors as having been hit hardest by the pandemic. The survey respondents report that rents and capital values are expected to fall sharply across the office and retail sectors during the coming year, whilst 93% of respondents envisage businesses scaling back their office footprint to some extent over the next two years. Interest in industrial/warehouse properties is more resilient, although some downwards pressure on rents is believed likely in the near term. Availability of leasable space on the market has reported to have increased sharply in both the office and retail sectors, prompting landlords to raise the value of incentive packages on offer to attract tenants, whereas there is little change in availability across the industrial sector in Q2. In the investment sector, 46% of respondents reported a fall in investment enquiries during Q2, showing the weakest return since the end of 2008. Overseas investment demand also declined across all sectors for a second successive quarter. RICS Survey contributor, Andrew Kilpatrick of Kilpatrick & Co said “Swindon’s commercial market has been becalmed during the lockdown, like the rest of the country. Whilst we have managed to rescue most of the deals we had agreed pre-lockdown and have agreed new deals since lockdown, the severity of the impact of COVID-19 on the market remains to be fully seen, but will vary from sector to sector.” Copies of the RICS Commercial Market Survey may be obtained from the RICS on 020 7222 7000. Kilpatrick & Co specialise in commercial property and may be contacted at Delta 602, Delta Office Park, Welton Road, Swindon, Wilts SN5 7XF. Tel: 01793 643101; email post@kilpatrick-cpc.co.uk; www.kilpatrick-cpc.co.uk. For further information on this news release, please contact Gina Miller on (01793) 643101 or G.Miller@kilpatrick-cpc.co.uk.