Mood Improves

Oddly enough, given its many advantages, the south west economy and commercial property market has been one of the hardest hit regions of the UK in the recession. There had been such a dynamic in the past decade, notably in Bristol, that it looked set to weather the economic problems more easily than most parts of the UK. That view was reinforced by it having a thriving defence and high technology industrial sector, as well as its role in the UK’s distribution network. After a difficult period, the mood has lightened with September seeing a significant improvement in the office sector, notably in the out of town market which has been in the doldrums for some time. The indicators are for the improvement to continue and before long we will be facing a shortage of Grade A stock and large industrial buildings. The economy has been improving in the past five months, said the South West RDA after a recent survey by Markit Economics, even though the seasonally adjusted Business Activity Index sank to 52.8% in August from a three month high of 54.5% in July. There was a fractional inflow of business in August but the heartening point is that recent growth has come mainly from manufacturing.

This expansion has brought a rise in employment in manufacturing, which should be translated, in due course, into demand for commercial property. Shane Vallance of the South West RDA commented: “We’ve suspected for some time that the economy might struggle to maintain the pace of its recovery, and the latest data appears to confirm this. Indeed new orders and employment have weakened considerably, particularly in the service sector” (which means lower demand for offices). According to the Trades Union Congress 100,000 jobs have been lost since the peak of employment in the third quarter of 2007. The worst affected are construction (down 24 %) and transport & storage (down by 13%). The numbers employed in agriculture have, however, risen by 52%. These analyses provide the raw material for the stagnation of the property market in the past, although the recent rise in confidence could, hopefully, overcome this.


The South West Commercial Property Register

The South West Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Office Space in the South WestServiced Offices in the South West and industrial commercial property in the South West. You can also find the latest commercial property news for the South West region.