FNB’s Q3 2024 Property Broker Survey has reported a significant increase in optimism on the future of sales activity within the commercial property market with perceptions of a weak economy and political uncertainty having subsided significantly.
In the office property market, which recorded a strong, positive expectation index, brokers pointed to a shortage of stock to sell, either overall or in the smaller space categories. FNB believes these shortages are about specific types and locations of office space because some still point to the market being heavily oversupplied relative to demand.
The industrial property market, which recorded the weakest expectations index, brokers indicated stock issues with a small percentage citing ‘not enough stock in smaller spaces.’
Economic and political uncertainty have influenced broker activity expectations in the near-term in the retail property market, however, there was a significant rise in the percentage of brokers perceiving positive business sentiment (24% compared to Q2’s 12.2%).
41% of brokers cited stock issues with some leaning towards a ‘lack of supply’ across all three markets.
