Commercial incomes in 2012

Commercial incomes come under pressure for the second consecutive year.

17 September 2012, Words by Ian Bailey

 

Average income from all commercial sources on ‘All Estates’ came under pressure for the second year in a row and represented 13% of gross income in 2012 falling from the 16% recorded in 2010.

Similarly, average income from commercial sources on ‘All Estates’ decreased -7% to £27 per acre (£67 per ha) following a peak in 2010 of just over £30 per acre (£74 per ha).

Pressure was recorded on all commercial workspace rents with the exception of retail:

• Average office rents on ‘All Estates’ decreased by -6% in 2012 to £9.20 per sq ft.

• Average rents on ‘All Estates’ for let industrial units fell by -15% in 2012 to £3.43 per sq ft.

• A -5.3% decrease was recorded in average rents (£2.44 per sq ft) for storage units on ‘All Estates’.

• The average rent for retail units increased by 27% to
£15.67 per sq ft. In 2012, average rental income from telecom masts remained stable recording a 0.8% increase to £5,989 per mast.
This follows two years of consolidation from a peak of £7,315 per mast in 2009.

As in the agricultural and residential let sectors, the average surplus for let commercial property on ’All Estates’ was maintained recording 54% in 2012 compared with 52% in 2011.


 
 

Key Contacts

Ian Bailey

Ian Bailey

Director
Rural Research

Savills Margaret Street

+44 (0) 207 299 3099

 

Julie Baxter

Julie Baxter

Data Administrator
Rural Research

Savills Margaret Street

+44 (0) 1483 203492

 

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