As we all know the commercial property market in a number of the UK regions struggled to come to terms with austere times presented by the recession. Whilst there are a number of locations which are now beginning to see the first tentative steps of growth, there are still some regions which cannot see any light at the end of the long and winding tunnel.
Nebusiness.co.uk is a North East focused website, affiliated with the Journal and Evening Gazette, reporting on goings on in the business community across the region. The website has recently produced an article with the headline: ‘Cloud Still Hanging Over North East Commercial Property Market,’ which unfortunately tells everything you need to know about the status of the commercial property market in the region.
During the second quarter of 2011 the commercial property market in the North East has been unable to trigger any kind of recovery, which has in turn forced landlords to lower their rents in order to acquire new tenants.
North East estate agent Sanderson Weatherall told nebusiness.co.uk: ‘Empty rates and a lack of finance are stifling any movement.’
The latest survey by the Royal Institution of Chartered Surveyors (RICS) announced that over the course of the last quarter, there has been a rise in the level of unoccupied commercial property space across the region. The RICS report also said that the commercial property market in the North East is ‘downbeat’, with 18 per cent of respondents predicting a further fall in rental values during the coming quarter.
RICS chief economist, Simon Rubinsohn, said: ‘Broadly speaking, the rising amount of unoccupied floor space in the North-east reflects the situation across many parts of the country, illustrating the markedly different economic conditions that separate the capital from the rest of the UK. Moreover, this starkly contrasting picture is expected to persist for some time.’
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