Demand in the office sector will outstrip the retail and industrial markets in the next six months, according to a report by the CBI and GVA Grimley.
Occupier demand for commercial property will moderately increase over the next six months it revealed in its latest six-monthly analysis of property trends.
The survey found there should be an improvement in demand in the office sector but weakening demand in the industrial, warehousing and retail sectors.
Demand for office property has been subdued in the last six months, with take-up down by 8%. The report says this reflects the cost cutting and consolidation that has been occurring, particularly in the financial and business services sector.
Despite this, the survey is more optimistic about demand in the office sector over the next six months, noting that demand in the central London office market is still ‘very strong’.
The retail and industrial sectors are less optimistic about occupier demand in the next six months. The survey found that while 2% of respondents planned to take more space, 15% expect it to decrease it.
The survey also found that several occupiers would reduce the amount of space they have, rather than expand.