RICS UK Commercial Market Survey, Q3 2020

Summary

Source:
RICS
Market:
Industrial & Logistics
Date:
Q3 2020

Key take aways

  • Occupier and investor demand continues to sink across retail and office sectors
  • Industrial holds steady as recovery evident across the sector with capital value and rents turning positive
  • Overall, 78% of respondents nationally see the market in a downturn phase

Tarrant Parsons, RICS Economist, commented:

“Sentiment across the commercial property market continues to be weighed down by the challenging economic backdrop. In particular, the physical retail sector, which was already struggling prior to the latest crisis, is being hit hard by the accelerated switch into online shopping and a drop in footfall associated with social distancing. Likewise, occupier demand across the office sector remains in decline and may continue to come under pressure going forward as businesses reassess their office space requirements following the increased prevalence of remote working. “That said, some portions of the market appear to be well placed to expand in the face of these structural changes sweeping the economy. Indeed, the latest results point to a solid rebound within the industrial sector, with increased capacity in this segment needed to meet the sharp rise in online spending. As such, the twelve-month outlook for prime industrial rents and capital values has already returned to positive territory according to the Q3 survey feedback.”
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