South: Commercial property market 'back in play', says law firm

Demand still outstrips supply in many parts of the commercial property sector, says Nick Leavey, partner and head of the commercial property team at Coffin Mew Solicitors.

Following conflicting reports in the news this week regarding the state of the commercial property market, Leavey said:

“After running in fast forward to try to get transactions completed before Referendum Day last year, it was like somebody had pressed the stop button on the commercial property market when the result came in.
 
“As it turned out, somebody had actually just pressed the pause button, and after a long summer break, the commercial property market went back into play.
 
“Despite conflicting reports in the media, for professionals on the ground, so far, that has been the only obvious, direct impact of Brexit on the commercial property market in the south. The fact is that demand still outstrips supply in many parts of the commercial property sector, including housebuilding, student accommodation, offices and warehouse space – whilst, for example, many high streets and pub sites continue to struggle, because of the growth in online shopping and changing leisure habits of consumers – Brexit or no Brexit.
 
“However, whilst business investment, house prices and economic growth are down, and with interest rates set to rise, it may not be until the likes of the transport and logistics firms in the Solent region, leisure and creative industries between London and Brighton, and the car manufacturers and tech firms in the Thames Valley make their post-Brexit plans, that we know whether the commercial property market in the south will stay in play or switch into rewind.”