Top Commercial Real Estate Trends in the UK

Top Commercial Real Estate Trends in the UK

The commercial real estate industry is one of the few sectors in any country’s economy, whose trend should be closely monitored. Any economic fluctuations in a country have a direct effect on the commercial real estate sector. In the UK, this industry has, in the past two years, been at the centre of all economic and political activities within the larger European Union. Four key characteristic trends have been evidenced so far.

High Demand for Properties in London

London has been at the centre of all political activities in the UK. The looming Brexit and the political shakeups thereof have had a huge impact on property development trends in London. As more businesses focus on establishing themselves after exposure to Brexit, London is receiving far more interest than other countries in the UK. The high demand for properties in this city is gradually pushing up the property prices beyond the normal.

Regional Preference and Growth

The UK still remains one of the top global destinations for investments. London, in particular, attracts more flow of interested businesses and customers from Asia and North America, who target making an entry into the larger European area. This has strategically positioned the country at a better place for attracting more global traffic and thus more capital. The anticipated regional growth that the UK is expected to experience will redefine the commercial real estate industry within the area in the coming years. The increased preference for mixed-use development properties is a good incentive that will make the UK a pace-setter when it comes to commercial real estate property trends.

Integration of Logistics

Part of the commercial real estate trends in the UK have led to the increased demand for the integration of logistics services within developed properties. The construction of large warehouses within commercial properties enables large clients to fulfill their logistics needs with ease. This eliminates the demand for extra expenses in hiring warehousing services and facilities in other locations.

Realignment of Property Configurations

There have been experienced gradual shifts in the way office users are configuring their properties for use. The essence of this reconfiguration is to allow more tenants in offices to share office spaces under short lease arrangements. This is allowing more interested commercial property customers to rent at a fairly subsidized price as a result of cost-sharing.


Originally published at vijaykumarsharma.uk on October 31, 2019.