CONFIDENCE in the North West’s commercial property sector grew during the third quarter as demand for all commercial property types increased, says the Royal Institution of Chartered Surveyors (RICS).

Its UK Commercial Market Survey reveals that industrial property was the most sought after type, with 33 per cent of respondents in the region reporting a rise in demand.

Office space was the second most popular and even demand for retail space grew, albeit modestly.

Capital value expectations also recovered noticeably.

Over the next 12 months, 19 per cent more respondents expect capital values to increase, with the prime industrial and office markets expected to see the strongest gains.

However, more chartered surveyors reported a further drop in availability of all commercial property types during quarter three.

Looking ahead, RICS forecasts that increasing demand for commercial property, coupled with limited prime stock, is likely to push rents higher.

Simon Rubinsohn, RICS chief economist, said: "The latest results suggest that the commercial market has settled down [after the EU referendum], which is broadly consistent with much of the other macro news flow that has emerged over the past few months.

"In particular, the rebound in our occupier demand indicator suggests that for at least the time being, the UK economy is proving relatively resilient.

“Interestingly, the feedback we have received was noticeably more cautious in Scotland and parts of London but, despite this, the RICS results do suggest that the drop in the pound is encouraging foreign investors to show interest in the market."