This report is based on a survey of Propertymark commercial agents reviewing the second quarter of 2024. It is further addended with an analysis conducted by Propertymark of key statistics relevant to the commercial property market.
Economic outlook
At the end of the quarter (June 2024), the Bank of England base rate remained at 5.25%. In the 12 months to June 2024, inflation remained relatively static at 2.8% as measured by the Consumer Prices Index including owner occupiers' housing (CPIH), static at 2% as measured by the Consumer Prices Index (CPI) and trended downward to 2.9% as measured by Retail Price Index (RPI).
Rent levels
Optimism continues in the Land and Yards, and Industrial sectors. There has also been a positive shift in rental sentiment in the Take Aways sector. However, sentiment in the Leisure sector has turned negative and agents remain pessimistic about rents in the Office, Pubs and Restaurants and Class E sectors.
Class Use E Sector
In England, Class E incorporates a broad range of Commercial, Business and Service uses. These include everything from the display and sale of goods (Class E(a)) to the provision of medical or health services (Class E(e)).
NAEA Commercial members were asked what they expected to happen to supply and demand levels within the sector over the next 12 months. 29% forecast an increase in supply whereas just 14% forecast corresponding increases in demand.
Office sector
20% of NAEA Commercial members predict an increase in supply over the next 12 months, whilst the majority (94%) predict that demand will decrease or remain the same.
