Businesses to face rent hikes

Business news
Business news

WIGAN businesses are expected to face further rent hikes as an industry organisation warns the cost of trading across the region will go up.

Commercial rents across the North West are expected to rise by an average of four per cent over the next 12 months, according to the Royal Institution of Chartered Surveyors (RICS).

The organisation’s quarterly market survey shows the biggest hikes in the region will be in offices and industrial premises, which could face rises of around 4.3 per cent and 4.6 per cent respectively.

Costs are expected to continue rising due to the lack of commercial space available for leaseholds in the region, together with the rising demand for such properties.

The third quarter of 2015 saw demand for commercial buildings in the North West go up, with 32 per cent of those who responded to the survey saying they had seen interest in property rise. This compared to 28 per cent seeing a rise in demand during the second quarter.

A total of 61 per cent of respondent saw increased demand for offices and the same figure was reported for industrial premises.

RICS said while individual businesses might not welcome higher costs the demand for industrial buildings pushing up rent prices did suggest a healthy regional economy, with increasing commercial activity following a quiet summer.

RICS chief economist Simon Rubinsohn said: “While for individual businesses, the rise in rental values might not be particularly welcome, as a bellwether for the UK economy, the survey highlights some very reassuring growth patterns.

“Nationwide, we’re seeing a solid increase in demand for commercial properties across retail, office and industrial sectors.

“In other words, at the moment, however badly rental costs might pinch, they do not appear a barrier to growth.”