It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Chris Wright, director of commercial property consultants, OMEETO.
Despite a more challenging economic backdrop, I am confident that, overall, we will enter 2023 on a positive note – largely thanks to the diverse and robust nature of the East Midlands economy which continues to be reflected in the health of the commercial property market.
There are, of course, fundamental challenges, not least interest rate increases and spiralling energy costs. I sincerely hope that 2023 sees meaningful measures put in place to assist businesses with the latter.
As a commercial property agency practice, we rely on property transactions taking place. We are seeing continuing demand for neighbourhood retail, well fitted and flexible office accommodation and for industrial/warehousing space. In 2023 we are expecting occupier demand to continue in these sectors, particularly for good quality, well positioned properties.
Throughout 2022 the commercial property market was generally starved of freehold stock, with strong competitive demand across all sectors. As a result of the availability and cost of borrowing, the number of proceedable purchasers has reduced. We expect there may be an increase of freehold supply in the New Year. This might be a welcome relief for some and I am aware of quite a number of businesses who have not been able to achieve their owner occupier goals. An increase in freehold supply could also create investor opportunities. The key is being well positioned and confident to take those opportunities.
