The UK’s commercial property sector is showing renewed confidence, with fresh data from Propertymark’s latest Commercial Outlook revealing a significant boost in supply expectations across key areas.
Propertymark’s Q4 2024 data shows that 83% of its members anticipate an increase in supply in the Land and Yards sector – soaring 33 percentage points from just 50% in Q3.
Similarly, optimism in the Industrial sector is climbing, with 53% of agents forecasting supply growth, up from 40% in the previous quarter.
However, confidence in the Office sector is waning. While 45% of agents expect no change in supply, only 27% foresee an increase—marking a stark drop from 43% in Q3.
MARKET EVOLUTION
Nathan Emerson, Chief Executive at Propertymark, acknowledges the commercial sector’s ongoing transformation despite economic stabilisation and says: “Many business sectors are evolving to keep pace with ever-progressing trends and shifts in demand”
The decline in pub and restaurant outlets remains a long-term trend, while hybrid working continues to reshape office space needs.
On the flip side, Emerson highlighs robust confidence in the Land and Yards sector, as well as in takeaway businesses.
He adds: “With many towns and cities embarking on substantial regeneration projects, the medium- and long-term outlook remains strong, with keen investor interest anticipated,” he added.
RETAIL REBOUND
Michael Sears, a Propertymark Board Member, points to a revival in prime retail, driven by emerging brands.
“We’re seeing a resurgence in brand enquiries. Many are well-established businesses with strong financial backing, even if they aren’t household names yet,” Sears explains.
This influx of new players comes as legacy brands either stagnate or slow their expansion. “The evidence is clear from the lets we are completing and the increasing number of enquiries from brand surveyors and agents,” Sears noted.
MARKET IN FLUX
While the data suggests an overall positive trend, the shifting landscape highlights the need for adaptability. As traditional sectors face headwinds, others are capitalising on emerging opportunities.
With regeneration projects underway and investors watching closely, the commercial property sector’s trajectory remains one to watch in the coming months.
