Ian Appleby, commercial property curveyor of Stourbridge Agents, Lex Allan Commercial, provides his monthly review of the current local commercial property market and looks forward to 2015.

NOW that the nights are drawing in and the temperatures are dropping, and we dare consider the impending loom of Christmas (sorry!) we can take stock of the year to date and perhaps glance at the prospects for the early part of next year.

Over the last three months, consumer confidence has continued its upward trend and is now back around pre-‘global crises’ levels. This is obviously encouraging news as an active housing market results in more frequent visits to high street shops and out-of-town retail warehouse parks and shopping centres. So far this year, a buoyant local housing market has aided the demand for retail high street premises and small warehousing.

We have been recently very successful in placing tenants and purchasers in Stourbridge High Street as well as Lye, Old Hill and Halesowen.

Demand over the last quarter has exceeded expectations, with the only sector remaining immune from activity being the larger office, but we would expect even this sector to show signs of an upward trend in the coming months. We are increasingly receiving requests from small business owners currently working from home and looking to expand into small offices. This trend was demonstrated in the successful letting of prominent office space in Stourbridge High Street and Brierley Hill this month, for example.

Looking ahead, once the annual end-of-year festivities have passed and we move into 2015, general confidence is forecasted to continue to improve over the year. The retail sector will arguably benefit more from the recovery in the UK housing market than other commercial property sectors. Rents are likely to remain static for the remainder of this year, but after the new year we would expect rental growth for the sector as a whole to show a steady upturn.

With commercial property purchase prices remaining steady, the market for investment opportunities is strong, with investors looking for tenanted premises to provide healthy investment returns by comparison with non-property alternatives.

Investment property is required to service the demands of our retained investor clients.

For us here in Stourbridge and The Black Country, with our strong tradition of service industries, bustling high streets, warehousing and storage facilities, we are well positioned to benefit from the economic upturn and steady housing market growth. Maybe it will soon be time to raise a glass to toast our improving commercial market, or the impending arrival of santa of course... or both.