Rics confirms commercial property market slowdown

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The Royal Institution of Chartered Surveyors (Rics) has highlighted the fact that the commercial property market is experiencing a downturn.

Nevertheless, the group believes that there could be opportunities in the office market for investors if things begin to settle down.

Spokesman Oliver Gilmartin said that the downward pressure on prices is likely to persist "as the drag from credit market disruption overhangs the global economy".

He said: "The biggest challenges are currently in the retail and office market, with the industrial sector the most defensive of the three as it less dependent on the slowing UK economy.

"However, of the three sectors, the retail market will probably come under the most pressure as consumer confidence and consumer spending eases back during 2008 while competitive pressures on the high street remain. There may be opportunities in the office market if things start to settle down especially for medium term investors as yields may start to look attractive."

He also noted that offices outside the M25 are likely to perform better than those in the capital, because the mix of tenants is less reliant on the global credit markets.

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