Industrial and warehouse space attracts most commercial buyer demand
Industrial and warehouse space is currently the most in-demand commercial property sector as e-commerce continues to soar, with 31 per cent of spaces listed already snapped up.
Sirius Property Finance analysed current demand across the commercial property sector by measuring the number of commercial assets currently available that have already been sold subject to contract (SSTC) as a proportion of all available investment opportunities.
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While industrial and warehouse space is still attracting the highest level of commercial buyer demand, the figure is 1.2 per cent lower than it was in the second quarter.
The area with the highest demand for industrial/warehouse space is the West Midlands at 43.2 per cent, but the South West has seen the biggest quarterly demand increase of 3.8 per cent.
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Conversely, the research found that leisure and hospitality assets are facing the biggest struggle to attract buyer demand, with just 13.2 per cent of listed units already sold – a 0.6 per cent drop from the previous quarter.
“In a cost-of-living crisis, many households are avoiding any unnecessary spending and so the impetus for investors to purchase leisure and hospitality space simply isn’t there at the moment, especially given how we have no idea how long this current economic uncertainty is going to last,” said Nicholas Christofi, managing director of Sirius Property Finance.
“Luckily for the commercial sector, however, warehouse and industrial space remains in rude health. It’s the one corner of commercial property that thrives in partnership with the internet as more and more businesses look for ways to fulfil the logistical requirements of online retail.”
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