This report is based on a survey of Propertymark commercial agents reviewing the third 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 Q3 2024, the Bank of England base rate descended to 5%. In the 12 months to October 2024, inflation dropped to sit broadly in line with the Bank of England target of 2%.
Rent levels
Our members were asked about expectations for 2025 rent levels (ITZA levels in the case of the Class E sector). Their continued optimism is seen in the industrial, land and yard sectors. There has also been a positive shift in rental sentiment in the takeaways sector. However, sentiment in the pubs and restaurants sector remains negative and agents remain pessimistic about rents in the offices sector.
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)).
We asked our members what they expected to happen to supply and demand levels within the sector over the next 12 months. 40% forecast an increase in supply, whereas 20% foresee a potential decrease in demand.
Leisure sector
100% predicted supply would remain constant, whilst there was a mixed consensus regarding future demand.
