As we head into the last quarter of this year we have taken a moment to review the current state of the commercial property market in Southwest London.
Enquiries have progressively diminished since the beginning of the year and this quarter is showing a reduction in the number of new enquires compared to last year.
Although the market would have reached a natural peak and downturn following significant rental growth over recent years, we interpret this downturn as a direct result of the confusion and uncertainty of Brexit negotiations, with many small businesses if not directly affected then indirectly affected where their own client base is anxious about outcomes of these negotiations.
Whilst there is not a massive oversupply of commercial property stock currently, demand is at a level that has encouraged landlords to be much more competitive in negotiating terms and we have seen many examples of rents being agreed up to 25% below asking terms in some cases and many quoting rents are being reduced by 10% or more.
Notwithstanding this we are seeing some levels of occupational demand coming through, however, it is very hard to monitor and track the current trends to predict future activity!
Stay connected with us to recieve the latest property updates and commercial news.