Britain’s commercial rents bounce back

Britain’s commercial rents bounce back

0:06 AM, 17th May 2023, About 2 years ago

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Commercial rents have bounced back across Britain, with an impressive 9.7% growth in the last year alone, data reveals.

According to Sirius Property Finance, the boom has overturned a previous downward trend which saw prices fall by -2.9% between 2021 and 2022.

The current average commercial rent is now £1,036 per week – that’s 42% higher than pre-pandemic levels.

The North West saw the biggest surge in commercial rental values, with an incredible 88.7% increase in the last year alone.

Wales also experienced significant growth of 40.8%, while the North East (39.2%) and East of England (21.6%) also saw notable rises.

‘Overcoming the impact of the pandemic’

The managing director of Sirius Property Finance, Nicholas Christofi, said: “Just as the commercial sector looked to be overcoming the impact of the pandemic, it’s been further hit by the economic uncertainty that has enveloped Britain in recent months.

“However, there are some very positive signs on the ground when it comes to the rental values being achieved across many parts of the UK, as well as the strong growth they’ve shown in the last year alone.”

‘Commercial rents now higher across every region’

Mr Christofi continued: “In this respect, the commercial sector has not only rebounded from its pandemic-induced slump, but it’s moved beyond the pre-pandemic benchmark, with commercial rents now higher across every region but three when compared to 2019.”

He added: “With commercial property investment declining in recent times, this strong growth should help reassure investors that the commercial sector still has a great deal to offer and that commercial rentals remain a profitable endeavour.”

Modest rises in commercial rents

In other regions, Yorkshire and the Humber and the South West, saw modest rises in commercial rents of 5.3% and 3.6%, respectively.

However, not all areas experienced this surge in rents with those in the South East falling by 18.4%, while the West Midlands (-14.6%) and East Midlands (-12.9%) experienced double-digit reductions since last year.

London (-4.6%) and Scotland (-2.6%) also saw a less severe decline in commercial rental values.

Despite these regional variations, the overall positive growth in the commercial rental market will bolster investor confidence – after previous research by Sirius Property Finance revealed that investment had taken a dive.


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