Industrial and office property still ahead of retail
RETAIL property continues to lag behind the industrial and office sectors in Wales with demand from prospective tenants falling and expectations for rents and capital values remaining weak, according to latest research from Royal Institution of Chartered Surveyors (RICS).
It commercial property market survey for Q4 of 2017, shows the market in Wales performed relatively well in the three-month period, with the survey suggesting that overall occupier demand and investment queries rose, driven by the industrial sector in particular.
And it also shows that industrial property in Wales from both occupiers and tenants are now amongst the strongest in the UK.
Rents and capital values in the industrial property sector in Wales are also expected to rise in the three months ahead, with the data strengthening compared to the previous quarter, in contrast to the retail sector where they are expected to be flat or falling. Expectations for office rents and values also remain relatively upbeat, though less so than in the third quarter of 2017.
This is a similar picture to the UK market as a whole, where occupier demand for retail property fell for the third consecutive quarter and the industrial sector was the star performer.
Chris Sutton, RICS commercial property spokesperson in Wales, said: “The structural changes in the retail sector in Wales continue, with a number of closures recently announced on the high street affecting a range of town centres. Cardiff though continues to attract significant occupier, development and investment activity, and construction is soon to commence on the 266,000 sq ft public sector hub for HMRC in Central Square.
“The industrial sector in particular is enjoying increased investor demand, and the cut to, and eventual abolition of, the Severn Bridge tolls will provide a further boost to the logistics sector.”