Holloway Iliffe & Mitchell - General Letting - Portsmouth

Date: 01 Apr 2008

Portsmouth property agents, Holloway Iliffe and Mitchell report that the commercial market is shifting reflecting the changes we are seeing in the international economy at large.

The commercial market always reacts differently to the residential market, but Holloway Iliffe & Mitchell can report that demand for freehold occupancy has levelled off from a peak some 2 to 3 years ago. With business trying to absorb higher energy costs and exporters analysing the fluctuating money markets you can see why a degree of hesitation has crept into the system.

The recent Budget was basically neutral for commercial property and property owners but business however remains cautious about the effects of the turmoil on the global financial markets.

However, whilst freeholds may currently not be as attractive to occupiers, leasehold enquiries in all size ranges remain constant and it will be interesting to see whether occupier demand continues, or as some pundits suggest the rate of enquiries will decline.

Director of Holloway Iliffe & Mitchell, Stuart Mitchell remains optimistic: "The variety of commerce in the greater Portsmouth area means that the general UK economy can sometimes appear to be playing a different game." He continued: "Portsmouth always has a shortage of good quality commercial development land and at the moment, I would even say this was acute. There still remains strong demand for both new and good quality second hand leasehold space in the area."

"Portsmouth city has a lot of development in the pipeline with the Tipner site, the strategic retail expansion of the Northern Quarter and the former IBM space, Lakeside all continuing to portray the optimism there is within the commercial property market in the city." He added. "We have started the year with a flurry of strategic deals and the reported slowdown does not seem to have had any adverse effect."

Stuart Mitchell