Commercial property in the UK has for many years been perceived as a situation that keeps on changing as a result of the hypothetical departure of the United Kingdom from the European Union means that for decades it has been a bellwether of Brexit. Different property stakeholders have been having different opinions and objectives on how the commercial property sector is looking very positive for 2019 in the UK.
There has been a circumvent against the hypothetical departure of the United Kingdom from the European Union and exchange rate. This has been brought about by European Union manufacturers who are currently exporting to the UK. This makes Commercial property sector look very positive in the UK because the European Union are now looking forward to setting up manufacturing plants there. The major reason also is because of the supply and cheaper cost of labor as well as property cost and lower land.
According to TIM AISBITT who has six offices in the UK and also an associate director at Bradley Hall, Estate agents, and Chartered Surveyors, he is much positive on office rentals for the coming year. He predicts that retail rents will not only rise as the industry picks up again but also office rents will steadily increase in a prime location.
Sectors which are most likely to see high demand in the commercial property include offices as a result of growth in the technology sector in addition to professional and research services. In the industrial sector that logistics companies may require larger warehousing due to industry growth.
Commercial property sector in the UK was positive in 2018 because of Vehicle Automotive which will continue to generate high demand for parcel delivery. This will automatically increase the percentage of retail sales which will move from the High street to e-commerce.
According to Neil Atkinson who is a director in Newcastle’s HTA Real Estate, predicts that there shall be a major new expansion at Gateshead’s Follingsby Park which has a land to satisfy large-scale requirements. This is as a result of the Nissan chain supply which will create major supplies for Washington and the wider bazaar.
There has been a healthy level of demand and very restricted supply at the prime industrial location for example in Follingsby and Team Valley. As a result, Chris Donabie who is a senior surveyor with Newcastle-based Naylors predicts that we should expect to see further rental growth at these prime industrial locations. There will be a Rental growth which will be as a result of further designs of building and tentative development.
A research by Bob Fletcher who is the director of Newcastle-based @retail, gives an answer to a question on whether the retail property rents will rise in 2018 under potential developments in the North East retail commercial property scene. He says that at present there has been too much supply and not enough demand, therefore, we should expect rents in weaker locations to turn down further.
In summing up, 2019 looks in place to be a year of change and positive activity for the commercial property market, however, a remarkable negotiation has to be done on Brexit which is the main fear factor.
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