246: Strong rise in commercial property demand

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LONDON (Reuters) - Demand for commercial property has picked up markedly in the last six months and companies expect to increase their property holdings further in the coming six months, a survey showed on Thursday.

A survey of 132 firms carried out by the Confederation of British Industry and property advisers GVA Grimley showed demand for commercial property has been strong over the last six months, with a balance 21 percent of firms saying they increased their property holdings.

That compared with 7 percent in the last survey six months ago.

And respondents expect to build up their property holdings further in the next six months, with a balance of 25 percent saying they expect to increase the amount of property they occupy.

That is a marked improvement from a balance of -2 percent in the last survey, which was the weakest since the survey's 12-year history.

"The commercial property sector has benefited from the recent healthy economy and continues to look forward to a buoyant half year," said Doug Godden, head of economic analysis at the CBI.

Demand for retail property in the last six months was slightly above its long term average, with a balance of 18 percent of firms saying they increased their floorspace.

A balance of 19 percent of firms said they planned to increase their retail property holdings in the next six months, broadly in line with the long-term average of 17 percent.

The survey was conducted between October 25 and November 15.

Source:

Reuters.co.uk