Regional commercial rents 'growing'

29 July 2011

Written by Steve Olejnik

Commercial mortgage holders may have noticed rents increasing in regional locations.

This is following comments made by Mat Oakley, director of commercial research at Savills, who said these areas are following London, which had a more successful start to the year.

Any gap between the capital and other cities is not "necessarily wideneing" although it may be as large as it previously was, he noted.

Take-up in the best retail and office markets in other urban areas is beginning to rise and availability is starting to lessen, the expert continued.

He stated that usually, London has a faster recovery from economic turbulence and its success "trickles out" into other places.

In 2010, the capital performed strongly but markets in the rest of the UK were "probably still downwards", Mr Oakley explained.

However, London's commercial property market continued to outperform those in the rest of the nation during the second quarter of 2012, recent research from the Royal Institution of Chartered Surveyors found.

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