Tough going

Normally the commercial property market in the counties close to London reap the benefit of the performance of the capital city, which has been enjoying a strong run in the past two years or so. But this is not happening at the moment and in the three counties agents agree that the market is tough going.

This view is echoed in the market survey by the Royal Institution of Chartered Surveyors that said: "Improvements in the market seen in the first half year faltered during the third quarter as occupier demand fell back for the first time in 12 months."

Even London was less buoyant which may be one of the factors that is making it harder work in the three counties. The main barrier is a lack of confidence as agents and developers digest the flow of gloomy predictions.

As far as the industrial market is concerned, Charles Binks of Knight Frank said: "Market activity was subdued in the first half year in London and the south east. We anticipate a general weakening over the next 6 to 12 months as deteriorating consumer confidence and public sector austerity measures ultimately impact upon logistics demand."

That is not preventing deals and continued development, such as at Kings Hill in Kent where the steady process of improvement continues as Liberty Property Trust takes the long view. A similar view applies to Kent Science Park, Sittingbourne.

While the Kent Property Report paints a reasonably optimistic picture with the stronger performance of 2010 continuing into 2011, it does say that "take up in (business parks) has been subdued in the first half year." The report noted the high occupation rate at Kings Hill and that in north Kent "Crossways continues to draw in major occupiers."

That applies to offices and industrial, where Schooner Park, Crossways has attracted a steady stream of new tenants, such as Milton Keynes Paint & Equipment. Broadly speaking, yields have fallen for office properties.