Is Commercial Property Slowing Down?
Birmingham Commercial Agents - Shepherd Commercial talk through the market
Put simply, yes the UK commercial property market is slowing down in 2024, but only in comparison to the post-pandemic years with record rents and sales figures.
Commercial Property Market
It would be outright lying to claim that commercial property in the UK was ‘speeding up’ as opposed to the cooling off we’ve seen in recent months. This is something which has very much been expected as the stellar record years of 2021 and 2022 following huge stimulus packages and injections into the market from pandemic restrictions.
Commercial agents and particularly consultants have been awaiting the slowdown for a while and many will have implemented strategies to mitigate the risks and pitfalls of the inevitable.
However, just because the market is slower than 2021, does not mean that transactions are not taking place throughout the UK – particularly the West Midlands.
Shepherd Commercial has been established for over 20 years in Birmingham and Solihull and has witnessed market upturns and downturns multiple times, yet despite the transaction figures lowering, we’ve concluded over 50 deals in the first 3 quarters this year alone. An uprise on 2022, just without the record sales and rental prices.
Despite more transactions, the cooling is really taking place in the purchase prices and rent headlines on the market. Landlords and vendors need to take a re-consideration on the achievable figures for the market.
A key sub-division of the sector which is perhaps witnessing the most significant cool-down is the office lettings area.
Office rental figures are down year on year with available inventory at its’ highest since the pandemic. Whilst in recent years, the focus has been primarily on condition of space, there is now so much high quality space available that competition is fierce on price per square foots.
We’d advise any landlord seeking recent advice to contact us on 01564 778890.