Content category: Commercial landlord insurance
The UK commercial property market is still suffering due to the current economic climate, which could put additional financial strain on landlords working within the sector.
This is according to Josh Miller, senior economist at the Royal Institution of Chartered Surveyors, who said continued weakness in office markets across the country is still a very relevant problem.
Mr Miller went on to note outside London conditions appear to have deteriorated during the second quarter of this year, as tenant demand declined at a higher rate and rent expectations away from the capital "remain negative".
His comments come after property company Knight Frank reported the regional office markets held up better than expected during the three-month period across the 11 cities it operates, with total take-up for the quarter totalled 1.4 million sqft - a 32 per cent rise from 2011.
However, according to the firm, the timeframe was somewhat skewed by a record take-up of commercial property in Aberdeen - in which 547,926 sqft was occupied.
Knight Frank said the findings were unsurprising "given the economic backdrop", as most markets experienced lower take-up in the three-month period, compared with the 2011 quarterly average.
The three exceptions are Aberdeen, Edinburgh and Glasgow, which have all experienced higher than average activity during the quarter.
However, the company said despite the economic climate, demand from prospective tenants is anticipated to remain at the current levels over summer, although a number of active requirements provide a hint of positivity.
"In central Manchester and perhaps other key cities outside of London - in the prime areas of those cities - probably conditions are a lot better [than other regions]," Mr Miller added.
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