THE north-west commercial property market remains in the doldrums despite an improving picture nationally.

The latest figures from the Royal Institution of Chartered Surveyors (RICS) show that across the UK demand for commercial space rose for the second month in succession.

With London leading the way, the national market has seen a rise in demand for both office and industrial space. Only retail continues to decline.

However, the North-West market is still struggling to shake off the effects of the recession.

Surveyors across the region report decreases in both demand and confidence.

Rent expectations for offices have increased by 17%but still remain in negative territory, while available office floor space is up to 46% from last quarter’s survey.

In the retail sector, demand has reached a plateau at 0%. Surveyor confidence in the regional market has decreased by 10% and occupier enquiries have also reduced by 7%.

Rent expectations remain low and available floor space has seen a downturn from 37% to 25%. Completions on new retail developments in the North-West have stabilised, but remain in negative territory.

Demand in the industrial market has seen a positive lift of 24%, surveyor confidence has remained at 17% while occupier enquiries have dropped from 31% to 17%. Available industrial floor space has increased by 10%.

Chris Johnson, a partner at commercial agency Smith & Sons in Wirral, said: “Retail-office enquiries are picking up with the rate of deals completed on the letting side increasing.

“The investment market is still very slow, although we are seeing a minimal increase in the banks lending to potential investors.”

Anthony Hill, from the Southport-based Anthony Hill Partnership, added: “The market has fallen off in the last three months.

“Enquiries are down and the future does not look bright.

“Landlords are very worried about empty rates coming back, which will result in rents falling.”