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Autumn Commercial Property Update

November 2023

By Duncan Brown FRICS IRRV, Partner and Head of Commercial Property

Business owners tend to make property related decisions based upon the health and needs of their businesses and their confidence in the economic outlook whilst investors are more inclined to have an eye on rental levels, returns and risk.

At the moment occupiers and investors are being cautious for understandable reasons. However, there is activity in the commercial property market and there are competitive deals for buyers and tenants. Capitalisation yields in the investment sector have certainly moved out; in a number of cases by 2 percentage points, which presents opportunities for those looking for better returns than in deposit accounts.

In the South West, despite the difficult economic climate rents have been fairly stable over the past 12 months. The industrial sector has cooled slightly but there remains limited supply, office rents have not changed and whilst prime retail continues to be the more challenging of the three, rental levels appear to similarly be stable.

My view is that whilst an element of caution will remain within the commercial property market over the coming months there is reason for optimism with there being opportunities for both occupiers and investors.

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If you require advice, whether as a landlord or tenant, we would be delighted to help. GTH have award winning commercial surveyors with experience in renting, selling and valuing properties as well as providing landlord and tenant advice. Do please contact Duncan Brown or the teams in Taunton, Yeovil or Dorchester.

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