According to a survey of 132 firms carried out by property advisers GVA Grimley and the CBI, demand for commercial property has been strong over the last six months. Some 21% of firms surveyed are saying they increased their property holdings, compared with 7% in the previous survey of six months ago.

Stuart Morley at GVA Grimley says: "Above trend growth in the UK economy, reflected in the rise in business output and employment seen in this survey, is pushing up demand for commercial property. If anything, the biggest concern is that there arent enough suitable commercial properties to satisfy demand. This is particularly true for parts of London and the South East but the outlook nationally is upbeat for the commercial property sector. A slight slowing in the UK business output over the next six months, in line with the expected slowdown in the world economy, is not expected to hold back growth in demand for offices, shops and warehouse space."