DEMAND for commercial property continues to decline in Yorkshire, says a survey by the Royal Institution of Chartered Surveyors.
Occupier demand fell for the first time in 12 months – with the net balance falling to minus 5 from plus 12. Demand fell across all sectors, but industrial space showed the greatest decline, falling to minus 9 – the lowest level since the second quarter of 2009.
Chartered surveyors report that concerns over the economy have prompted a more cautious attitude from firms when making investment decisions, which has had a big impact on the market.
Supply to the market continued to increase at roughly the same pace as the last three months.
Yorkshire and Humber saw the biggest rises, while availability broadly stabilised in London and the south.
Office space increased at the greatest pace – with 38% more chartered surveyors reporting a rise than a fall in availability, down from 47% more during the previous three months.
As the market becomes increasingly challenging, inducement from landlords to secure a letting picked up in all regions.
In Yorkshire and Humber, 15% more surveyors reported an increase rather than decrease in the value of inducements offered by landlords. The office sector saw the most inducements.
Development starts continue to decline in the region – with 38% more surveyors reporting a fall rather than a rise in starts.