Occupier demand for commercial property continues to fall - survey

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Occupier demand for commercial property continues to fall - survey

OCCUPIER demand for commercial property in Northern Ireland continues to fall, according to a new survey.

The latest Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor found the sector remained weak at the beginning of 2023.

Demand for commercial property, particularly offices, has fallen substantially since the introduction of hybrid working arrangements during the pandemic.

The latest survey among property professionals in the north suggests demand fell again in the first three months of 2023, with industrial property the only sector where demand wasn't in decline.

Demand from investors remained flat in the first quarter.

RICS expect the continued fall in overall occupier and investor demand to result in falling rents and capital values.

Garrett O'Hare of property firm Bradley NI said: “The results of the survey feedback are unsurprising given the challenges and uncertainty that the market is facing.

“With demand from both occupiers and investors falling, respondents now anticipate that rents and capital values will come under pressure while the industry continues to adjust to a changed economic environment.

“Whilst investor and occupier demand in the industrial sector remains buoyant currently, we can see that retail and office spaces seem to be experiencing more challenges in terms of buyer and tenant demand and capital and rental value achievable for various reasons.”