The Q3 2016 UK Commercial Property Market Survey found that occupier demand in the office sector fell for the second successive quarter in London.

When asked about whether firms would look to move away from the UK following the Brexit vote, central London was among the areas that recorded the highest share of respondents indicating that they expected firms to relocate abroad.

In terms of rental growth, London and Scotland were the only areas in which near-term rent expectations did not move into positive territory.

However, central London did see the sharpest pick-up in foreign investment enquiries compared to all other areas of the UK.

It was found that foreign purchasers were looking to take advantage of price reductions as 51% of respondents now perceived commercial real estate to be overpriced in central London compared with 79% at the start of the year.

RICS revealed that capital value expectations across London as a whole were pointing to more or less flat trends over the coming 12 months, although prime retail and industrial units are expected to increase in price.

•   £70m of commercial property sold at auction
•   Prime commercial rental values on the rise despite Brexit uncertainty
•   Pulling out of deals deemed biggest post-Brexit issue for commercial market

The survey results were reflected by those who commented on the state of the London commercial property market, including Julian Woolgar of Knight Frank.

“It is very difficult to comment with certainty at present due to the issues around what the landscape will be while we go through the Brexit process and when we are out the other side.”

Meanwhile, Kevin White of Montagu Evans, added: “Indecision over Brexit is stagnating many parts of the market.

“High-end residential development is suffering, but there are lots of opportunities in the mid-market.”

However, Nick Belsten of Indigo Planning, remained optimistic, adding: “The cheapness of sterling is re-igniting interest from foreign investment, which should see increased attraction towards the prime central London market.

“There are some instances of companies seeking to relocate offices out of London.

“However, this is more a case of setting up new offices than full relocation outside of London.

“Ultimately, London will remain as a leading financial centre whether in or out of the EU.”