Lack Of Urgency In The Commercial Market
Our records of deals set out below demonstrate that there continues to be market activity across the commercial spectrum in Oxfordshire. However, one of the more frustrating aspects of this market is the lack of urgency by occupiers to transact deals. Whilst transactions generally take 6-8 weeks to complete it is not unusual for deals to take 6 months or more to complete. The lack of pressure and competition means occupiers can dictate the pace and complete when it suits them. Landlords would rather get the occupier eventually than risk losing the deal.
Whilst not trying to exaggerate any shortage of supply, it is interesting to reflect on the fact that quality stock in diminishing. Office occupiers are able to find only limited quality space in the city centre and ring road space is being eroded. This could prove an opportunity for landlords to refurbish office space in the near future as it is highly unlikely any new build will occur in the next 18-24 months if current economic conditions prevail. The industrial market is similar and quality space of less than 15,000 sq ft can be difficult to find. Once take up improves quality space could become an issue and force occupiers to consider more peripheral locations for the best deals.
An upsurge in demand is a pipe dream at present and the extended summer has seen new enquiries tail off significantly. We can only hope that the combined Jubilee/ Olympic rest and patriotic well being will inspire business in Q4 of 2012. Let’s hope Team GB can inspire a sprint finish in the economy...
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