The South West commercial property market has performed well in the first half of 2017 thanks to “robust” demand from the logistics, technology, media and telecommunications (TMT) and public sectors, according to Alder King.
The property consultancy’s Market Monitor Update found occupational activity has remained resilient, with buoyant transaction levels in many parts of the region, despite political and economic uncertainty. However, a steady fall in stock levels across all size ranges and sectors is said to be a concern.
Industrial take-up across the South West totalled 4.5 million sq ft, the second highest H1 figure for six years.
However, industrial supply has fallen by 15 per cent in the past 12 months to 3.573 million sq ft, its lowest level for 15 years.
The South West office market recorded take-up of 857,000 sq ft, broadly in line with the five year average. Office supply is also at its lowest level for 15 years, down 19 per cent across the region in the last 12 months.
Simon Price, partner and head of agency at Alder King, said: “The volume of transactions and take-up figures across the key centres of the South West so far this year have been very encouraging given the ongoing political and economic uncertainty and suggest that for most occupiers it’s business as usual.
“We remain optimistic about the outlook for the second half of the year, with several high profile deals in the pipeline.”