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Press release

26 OCT 2017

Industrial sector remains strong while retail suffers

Demand for industrial property space in Wales is significantly outstripping supply, the RICS Commercial Market Survey, Wales, Q3 2017.

Chartered surveyor respondents are reporting increases in occupier demand for industrial space and falling availability. They are also pointing to strong rises in interest from investors to purchase industrial property assets. As a result, both rents and capital values in the sector are expected to keep rising in the three months ahead.

This is contrast to the retail sector, where occupier demand is reported to have been falling, and investor interest flat. As a result, short-term rent and capital value expectations in the retail sector have declined, according to the balance of surveyors.

While there is variation between sectors, overall the commercial property sector in Wales remains stronger than in other UK regions, according to the survey. Like the industrial sector, office continues to perform well, with occupier demand and investor interest rising and expectations for rent and capital values in the three-months ahead still positive.

Survey highlights

  • A net balance of 20% of respondents reported occupier demand (all sectors) being up in the first quarter. Demand for industrial space was particularly strong (+40%).
  • The balance of respondents (-17%) indicated that availability of commercial property space fell. This was driven by the fall in availability of industrial space.
  • The net balance for three-month rent expectations was +19%, meaning that 19% more surveyors expect rents to rise than fall. This was driven by increased sentiment in the office and industrial sectors.
  • Investment enquires were up according to a net balance of +17% of respondents. However, there was variation at a sector level with investment enquiries for industrial and office space rising and flat for retail accommodation.
  • The net balance for three-month capital value expectations was +20% with capital value expectations in the industrial sector particularly strong.

Read and download the full survey