East of England sees highest demand for commercial property

The cost of commercial real estate investment across the nation has fallen by -12.7% year on year, while rents have climbed by 4.9%.

The research - which studies demand for commercial property and the costs in investing - shows that when looking at the regional picture the East of Englandis home to the strongest commercial real estate market at present. 44% of all commercial investment opportunities across the region have already been snapped up by investors, while 24% of all commercial lets have already found tenants. 

Further research from Sirius Property Finance suggests that this strong demand is being driven by low investment costs and high rental returns.

The North East has also seen the largest increase in the average price of commercial real estate, climbing 15.9% in the last year, versus an average decline of 12.7% across Britain as a whole. 

Head of corporate partnerships at Sirius Property Finance, Kimberley Gates, commented: 

“It’s certainly a bit of a mixed picture across the current commercial real estate sector and while a robust level of investor demand remains, upward price growth across some regions has impacted their appetite for investment, even when rental values have also increased notably. 

"In contrast, there are some regions, such as the East of England, that offer the ideal balance of softening property prices along with strengthening rents and it’s no surprise that demand in these regions is substantially higher. 

"With the commercial sector having largely recovered from the impact of the pandemic, we expect to see demand continue to return to the sector, although this activity will be largely focussed in areas that offer the best bang for buck in what is becoming an increasingly difficult economic and financial landscape.”