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Future bright(er) for UK commercial development

14th August 2013

Future bright(er) for UK commercial development

This week’s news that the residential property market in the UK and particularly London is mirrored on a larger scale in terms of commercial property development. A greater availability of lending has contributed to the stimulation of the commercial sector – and in fact the trend of increased development is a UK-wide one, not restricted to the capital.

Savills has conducted a report which shows that while development was most noticeable in London, there has also been an increase in other parts of the UK such as Scotland. Any recovery may indeed move forward in small steps but the industry will hope that the hesitation and obstacles in getting new projects of the ground may now be in the past.

The Savills report also notes the most positive outlook by those in the industry for over seven years, with construction companies optimistic about the remainder of the current year; July demonstrated the fastest rate of increase in commercial development since May 2007. 

The report also highlighted the importance of the private sector in the recovery, noting that the commercial development and construction emanating from the public sector was ‘marginal’. The private sector is responsible for by far the majority of new construction, which emphasises the importance of investment and lending as factors in the equation of recovery. 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants. 

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