As the commercial property sector comes to terms with a torrid three years, Sam Metcalf examines whether there’s still room at the bottom.

It was always going to happen after the firestorm of 2008, of course, but it seems it is only now that the fallout from the commercial property sector is making itself apparent. Mergers, spin-outs and takeovers – from the big boys to the local minnows, it’s all change.

Interestingly, there are differing views on whether the so-called "consolidation" of the commercial property sector is a good thing. Some see it as natural evolution for an industry that simply has to change with the times, whilst others bemoan the fact the more regional agencies can no longer compete on a level playing field with the multinationals.

Take Jane Leedham, leasing manager for SEGRO in Birmingham. She told me this week that it is getting harder and harder for the more regional agencies to succeed against the global firms who can generate turnover from a wider area and a wider number of disciplines. As a result, she thinks we'll continue to see the global agencies making offers for smaller companies because they will feel that they can make 'value' purchases, enabling them to capitalise on the weak economic times.

She said: "There will be strong demand for those smaller companies that have a good client base or a skill set that the larger firms want to acquire. For the Midlands, this means there will be less choice for the customer who is looking to retain a property professional. Overall, I think that further consolidation amongst property agents in today’s market is a bad thing - competition is healthy and it drives a business's efficiency and quality service provision."

Charles Trafford has more than 20 years' experience in commercial property in the Midlands and has worked for companies including Innes England and Chesterton. Trafford recently left Bartlett Property in Birmingham, where he was a director, to set up shop on his own. He launched his consultancy, Trafford Oliver, in Nottingham earlier this year.

He told me: "The landscape of the Midlands’ property sector is definitely changing and there is a continuing shift in the way firms are evolving. This obviously has stemmed, to a significant degree, from the downturn and how it has affected companies and the way they do business in the region.

"Sadly there have been a number of job losses. We have also seen the various mergers and takeovers and with it the ongoing demise of the old-fashioned partnership. There is definitely truth in the phrase ‘safety in numbers’."

In a tough market, partners of firms are at a greater personal financial risk, and a way to lessen this burden has been to join forces with other agencies. The partnership that was King Sturge merging with JLL has been the primary example, says Trafford.

"This is not to say that there is no room for smaller, independent firms, like myself - there is room for everyone. I am focusing on providing specialist advice in my own niche sectors."

Those at the top are bullish too, of course. Why wouldn’t they be? Only this week Carl Potter at GVA (which bought niche firm Humberts Leisure earlier this year) said his firm was on the hunt for further acquistions.

He also pointed out that the newly merged "mega-agents" will continue to work closely with smaller firms who clearly have greater local knowledge when it comes to marketing a sight. Room for both, then, it seems as the commercial property sector enters a new era. And in a week when DTZ announced a pay freeze for its staff, the minnows could yet have more influence on a local level than is yet apparent.