According to research published this month, UK commercial developers indicated a further expansion of activity in June. The report by Savills & Markit shows activity up to +22.2% from +18.1% in May, the headline total Commercial Development Activity Index – a net balance monitoring the overall performance of the UK commercial property sector – was at a nine-month high.<\/p>\n
Growth of public commercial projects eased, while that for private accelerated. The net balances posted +5.6% and +32.0% respectively.<\/p>\n
Activity increased in eight of the nine broad areas of the commercial property sector, the exception being public new build. The fastest rise was recorded for industrial\/warehouse work.<\/p>\n
In addition, the growth of total UK commercial property activity accelerated in June, with the respective net balance rising to a nine-month high of +22.2%. Public projects increased at a modest and slower pace, while private work expanded at the sharpest rate since July 2014.<\/p>\n
In our view this research underpins increased confidence and demand in occupier markets and the emerging & well-publicised supply squeeze which is becoming a feature particularly in the south east of the UK.<\/p>\n