Demand for industrial property has risen at the fastest pace in two years whilst the retail property market continues to decline, despite its recent improvement in consumer spending, says the RICS commercial property survey.

Retail property demand has fallen for the sixth consecutive quarter.

The falling price of goods and rising oil prices have forced retailers to focus on efficiency, with employment in decline.

Investment activity has increased in the retail sector despite this drop off in occupier demand.

Occupier demand in the office market accelerated at the fastest pace in the survey’s history with 26% more Chartered Surveyors reporting a rise than a fall.

The increased rise in activity occurred despite financial market turbulence and was again almost entirely driven by the London market.