Despite the booming London market, nationwide demand for commercial property has been steady over the last six months, according to the Confederation of British Industry (CBI) and property advisors GVA Grimley.

Over the next six months, growth in demand for commercial property is expected to pick up, returning to near the long-term average.
The twice-yearly survey of property trends which covers occupants in offices, shops, factories and warehouses reveals that over the last six months 22% of occupiers increased their property holdings while 20% reduced them. Firms are more optimistic regarding the next six months, however, with the balance expecting to increase the amount of space they occupy (+8%) close to the long term average (+11%).

Lai Wah Co, the CBIs principal economist said: “The outlook for the next six months is encouraging, with demand for commercial property set to pick up. While demand for office space is expected to improve, retail property occupiers expect their expansion to slow however, reflecting expectations that four recent interest rises will now start to restrain growth in consumer spending.”