{"id":7766,"date":"2022-08-24T10:42:39","date_gmt":"2022-08-24T09:42:39","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/08\/24\/commercial-property-market-review-august-2022\/"},"modified":"2022-08-24T10:52:55","modified_gmt":"2022-08-24T09:52:55","slug":"commercial-property-market-review-august-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/08\/24\/commercial-property-market-review-august-2022\/","title":{"rendered":"Commercial Property Market Review \u2013 August 2022"},"content":{"rendered":"
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Caution key in Q2 RICS survey<\/strong><\/p>\n<\/div>\n\n

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\u039cacroeconomic\npressures are negatively influencing investor sentiment, according to the\nlatest Royal Institution of Chartered Surveyors UK Commercial Property Survey\n(RICS), which signalled a more cautious tone in the commercial property market.<\/strong><\/p>\n<\/div>\n\n

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Rising interest rates remain a burden, with a net balance of\n-42% of respondents acknowledging worsening credit conditions in Q2. Indeed,\n+43% of respondents now sense the market is entering the early stages of a\ndownturn, a finding replicated across all regions of the UK.<\/p>\n<\/div>\n\n

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The survey also revealed a rise in vacant leasable space in\nboth the office (+22%) and retail (+27%) sectors. Meanwhile, an aggregate net\nbalance of +17% of respondents reported an increase in tenant demand during Q2.<\/p>\n<\/div>\n\n

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Near-term rental growth expectations are still in positive\nterritory (+14%), though eased slightly compared to Q1 (+19%). Twelve-month\ncapital value expectations are almost flat, with the all-property average now\nat +3%, well below the Q1 reading of +24%.<\/p>\n<\/div>\n\n

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Scotland sky-high in Q2<\/strong><\/p>\n<\/div>\n\n

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Investment in Scottish commercial property reached a four-year\nhigh in the first six months of 2022, according to a report by Colliers, which showed\ninvestors poured \u00a31.3bn into the country.<\/strong><\/p>\n<\/div>\n\n

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Offices were the most popular asset class, taking \u00a3330m of\ninvestment in the second quarter of the year. This is 80% above the five-year quarterly\naverage and was boosted by a few large transactions, notably the \u00a3215m sale of\n177 Bothwell Street in Glasgow, believed to be Scotland\u2019s largest ever office\ntransaction.<\/p>\n<\/div>\n\n

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Another stand-out trend in the second quarter was the\ndominance of overseas investors. Indeed, cross-border capital accounted for 61%\nof all activity by value in Q2, one of the largest shares on record.<\/p>\n<\/div>\n\n

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Responding to the figures, Director at Colliers, Patrick\nFord commented, \u201cThis year has been hard to predict [but] one thing is\ncertain \u2013 there\u2019s a real appetite for large scale capital deployment in\nScotland, regardless of sector.\u201d<\/em><\/p>\n<\/div>\n\n

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New skyscraper for London<\/strong><\/p>\n<\/div>\n\n

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A new 285m (935ft) skyscraper could be coming to the City\nof London, with plans underway to build a 60-storey structure at 55\nBishopsgate.<\/strong><\/p>\n<\/div>\n\n

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If the plans come to fruition, the new giant will join London\u2019s\n34 existing skyscrapers \u2013 defined as buildings over 150m tall \u2013 and stand only\n25m short of the Shard, currently the UK\u2019s tallest building. Costing \u00a3600m, the\nproject, which is being led by Schroders Capital, will produce 800,000 sq. ft\nof office space.<\/p>\n<\/div>\n\n

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Sustainability is reportedly baked into the proposal. The\nskyscraper would be the UK\u2019s \u2018first all-electric tall building\u2019<\/em>, according\nto a report from the Local Democracy Reporting Service (LDRS). The proposals\nalso include plans to fit the building with energy-saving, light-responsive\nblinds.<\/p>\n<\/div>\n\n

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The LDRS report notes that \u2018the slender tapering design\nseeks to make a positive contribution to the skyline by balancing the\ncomposition of existing and proposed nearby tall buildings.\u2019 <\/em>In any case,\nthe project remains in its early stages, with obstacles such as the City\u2019s\nplanning committee still to navigate. <\/p>\n<\/div>\n\n

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All details\nare correct at the time of writing (17 August 2022)<\/strong><\/p>\n<\/div>\n\n

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It is important to take professional advice before making any\ndecision relating to your personal finances. Information within this document\nis based on our current understanding and can be subject to change without\nnotice and the accuracy and completeness of the information cannot be\nguaranteed. It does not provide individual tailored investment advice and is\nfor guidance only. Some rules may vary in different parts of the UK. We cannot\nassume legal liability for any errors or omissions it might contain. Levels and\nbases of, and reliefs from, taxation are those currently applying or proposed\nand are subject to change; their value depends on the individual circumstances\nof the investor. No part of this document may be reproduced in any manner\nwithout prior permission.<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Caution key in Q2 RICS survey \u039cacroeconomic pressures are negatively influencing investor sentiment, according to the latest Royal Institution of Chartered Surveyors UK Commercial Property Survey (RICS), which signalled a more cautious tone in the commercial property market. Rising interest rates remain a burden, with a net balance of -42% of respondents acknowledging worsening credit […]<\/p>\n","protected":false},"author":12,"featured_media":7781,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,134],"tags":[],"hd_content_source":[116],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/7766"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=7766"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/7766\/revisions"}],"predecessor-version":[{"id":7782,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/7766\/revisions\/7782"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/7781"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=7766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=7766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=7766"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=7766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}