The West Midlands’ retail sector continues to decline in the face of increased online spending, as the region’s industrial sector posts solid demand, according to the Q2 2019 RICS UK Commercial Property Market Survey.

As Brexit looms, respondents are still seeing evidence of firms looking to relocate at least some part of their business as a result.

Looking at all sectors, occupier demand remained in negative territory for the fourth successive quarter in the West Midlands. However, retail is responsible for pulling the all sector figure down below zero, with a net balance reading of -57%. Meanwhile demand for the region’s office space improved slightly, and demand for industrial units rose sharply.  

Given this, the availability of vacant industrial space fell back once more during Q2, and availability of office space reduced. Unsurprisingly, the number of available retail units continues to grow across the region, with a net balance of +46% of survey participants reporting an increase.

As a result, both retail and office landlords raised the value of incentive packages on offer to tenants.  

Looking at rents across the region, the three-month expectations remain relatively flat and unchanged from Q1. Unsurprisingly, all the negativity is stemming from the retail sector, while office and industrial rents are expected to grow in the near-term.

Whilst demand for the region’s commercial property is above the national figures and respondents have a more positive outlook for future rents, 55% of respondents feel the market is in some stage of a downturn, with this proportion growing over the past three quarters.See the full story in this week’s edition of the Ross Gazette, or subscribe to our online edition here