The Outlook for 2022
1st December, 2021After the rollercoasters of 2020 and 2021 what can we expect in the commercial property sector in 2022?
The partners of Miller Commercial - Mike Nightingale, Brian Botting, Nick Maffey and Tom Smith offer their expert views:
Supply of suitable premises is likely to continue according to Tom Smith: “In the Commercial Agency sector we are expecting a continued demand for industrial units, secondary retail and offices. The South West has increased its attractiveness as a place to base a business and that demand has in the last 12 months contributed to a shortage of supply, particularly industrial units. If you are thinking of expanding, re-locating or starting a business in the South West in 2022 my advice would be to get in touch now so we can let you know as soon as suitable premises become available.”
Will businesses in the South West be in demand in 2022? Mike Nightingale thinks so. “The hospitality and tourism sectors continue to dominate the business transfer market. We are expecting this to continue in 2022 with the South West remaining a popular location for both visitors and those looking to acquire businesses and leisure/hospitality operations.”
For investors and developers Brian Botting has this message for 2022. “It is clear from the soundings we have taken from clients and applicants alike that there is pent up demand for good quality space across all market sectors as long as it represents a fair price. One of the problems for developers is achieving a sensible return when land and build costs are on the increase and whilst rents for industrial and residential space have risen it is still a balancing act requiring some deft handling. I anticipate some repurposing of tertiary and possibly secondary accommodation in the next few years especially around the fringes of the Cornish market towns.”
For those who own commercial properties Nick Maffey’s view is: “In the past 18 months or so it became painfully clear to many commercial property owners that employing a professional and very experienced managing agent, who have seen and worked through “boom and bust” before, was the key to achieving some continuity of income flow. Mid pandemic, average national rent collection statistics were hovering around 20%, Miller Commercial’s were just below 90%. We have invested heavily in IT in the past, but even more so we have invested heavily in our staff, staff that have the time and skills to get to know and understand our tenants and their businesses, and it is that vital relationship that bears fruit in a crisis. Consequently into 2022 I see our commercial property management department continuing as it is now in 2021, getting more and more enquiries from landlords, especially so from Devon, who want a better deal from their property managers.”