{"id":4181,"date":"2022-01-21T08:37:45","date_gmt":"2022-01-21T08:37:45","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=4181"},"modified":"2022-07-05T13:33:40","modified_gmt":"2022-07-05T12:33:40","slug":"property-market-review-january-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/01\/21\/property-market-review-january-2022\/","title":{"rendered":"Commercial Property Market Review – January 2022"},"content":{"rendered":"
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Upbeat tone in new year forecasts<\/strong><\/p>\n<\/div>\n\n

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2022 could be a year of recovery for the commercial\nproperty market, two leading forecasts have suggested, with Colliers\u2019 \u2018Forecasts\nfor 2022\u2019<\/em> predicting investment volumes will reach \u00a365bn and  CBRE\u2019s \u2018UK Real Estate Outlook\u2019 <\/em>also\nforeseeing strong growth despite lingering risks.<\/strong><\/p>\n<\/div>\n\n

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According to CBRE, the office market is predicted to return\nto historical levels in 2022; Colliers expect an office occupancy of 75% to be the\nnorm. On the industrial side, Colliers anticipates take-up topping 40m sq. ft\nfor a third successive year. Demand for retail space is expected to be strong\ntoo, notably in prime commuter high streets.<\/p>\n<\/div>\n\n

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Both reports expect the Environmental, Social and Governance\n(ESG) agenda to dominate in 2022, with Colliers anticipating the \u2018corporate\nstampede to net zero\u2019 <\/em>proceeding to \u2018change all markets fundamentally.\u2019 <\/em>Likewise,\nthe CBRE believes tightening regulation will be the main strategic driver of\nchange.<\/p>\n<\/div>\n\n

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Jen Siebrits, Head of UK Research at CBRE commented, \u201cWhilst\nthe challenges of the last year are not quite yet behind us\u2026 the property\nindustry can still go into 2022 with a renewed sense of optimism. Buoyed by a\ngrowing economy, real estate has real impetus for growth in 2022.\u201d<\/em><\/p>\n<\/div>\n\n

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Less office space as flexible working dominates<\/strong><\/p>\n<\/div>\n\n

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New data from the Valuation Office Agency shows that the\namount of office space in England declined by 2% in the year to 31 March 2021,\nwith experts predicting further falls since.<\/strong><\/p>\n<\/div>\n\n

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Over the last two years, demand for office space has\ndiminished, as many employees worked from home and others had large portions of\ntheir wages paid through the Job Retention Scheme. Average occupancy levels hovered\naround 10% in England in the week before Christmas.<\/p>\n<\/div>\n\n

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The fall in office space was especially pronounced in\nsmaller cities, with Central London more resilient. This is largely thanks to\nthe tech and media sector, which accounted for 23% of Central London take-up in\n2021, as well as 20% of active demand, according to Savills Research.<\/p>\n<\/div>\n\n

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Experts doubt office space will rebound sharply after the\npandemic, pointing to a survey from workplace expert, Acas, that reveals over\nhalf of employers expect more staff to work remotely for at least part of the\nweek.<\/p>\n<\/div>\n\n

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ESG key for hotels<\/strong><\/p>\n<\/div>\n\n

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After COP26 in Glasgow, ESG issues have been pushed firmly\ninto the spotlight. Hotels, one of the least energy-efficient property sectors,\nmay be a top target for change.<\/strong><\/p>\n<\/div>\n\n

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The built environment contributes 40% of UK carbon emissions;\nhotels are especially polluting, emitting more CO2<\/sup> per sq. ft than the retail and office\nsectors. To combat this, the sector has focused on making new development\nprojects align with environmental goals.<\/p>\n<\/div>\n\n

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Focusing on the existing hotel stock, however, might be more impactful, according to Savills. They note that only 4% of UK hotels have been built within the last five years, while 46% of existing branded hotels in England and Wales do not have an Energy Performance Certificate (EPC).<\/p>\n<\/div>\n\n

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Google invests in office return <\/strong><\/p>\n<\/div>\n\n

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Google is purchasing its office building at Central St\nGiles, near London\u2019s Tottenham Court Road, at a cost of $1bn, in a show of\nconfidence that its employees will be coming back to the workplace, despite\nuncertainty over the willingness of workers to return to offices.<\/strong><\/p>\n<\/div>\n\n

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The purchase will be in addition to a further $1bn spend for\na huge new headquarters in nearby King\u2019s Cross, which, together with other UK\noffices, will give Google capacity for 10,000 workers. Google currently employs\naround 6,400 people in the UK but has added around 700 positions in the last\nyear.<\/p>\n<\/div>\n\n

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Google\u2019s Chief Financial Officer, Ruth Porat said, \u201cOur focus remains on creating flexible\nworkspaces that foster innovation, creativity and inclusivity. <\/em>We\nhave been privileged to operate in the UK for nearly 20 years, and our purchase\nof the Central Saint Giles development reflects our continued commitment to the\ncountry\u2019s growth and success<\/em>.\u201d<\/p>\n<\/div>\n\n

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It is important to take professional advice before making any\ndecision relating to your personal finances. Information within this document\nis based on our current understanding and can be subject to change without\nnotice and the accuracy and completeness of the information cannot be guaranteed.\nIt does not provide individual tailored investment advice and is for guidance\nonly. Some rules may vary in different parts of the UK. We cannot assume legal\nliability for any errors or omissions it might contain. Levels and bases of,\nand reliefs from, taxation are those currently applying or proposed and are\nsubject to change; their value depends on the individual circumstances of the\ninvestor. No part of this document may be reproduced in any manner without\nprior permission.<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Upbeat tone in new year forecasts 2022 could be a year of recovery for the commercial property market, two leading forecasts have suggested, with Colliers\u2019 \u2018Forecasts for 2022\u2019 predicting investment volumes will reach \u00a365bn and  CBRE\u2019s \u2018UK Real Estate Outlook\u2019 also foreseeing strong growth despite lingering risks. According to CBRE, the office market is predicted […]<\/p>\n","protected":false},"author":3,"featured_media":4188,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,36],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/4181"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=4181"}],"version-history":[{"count":2,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/4181\/revisions"}],"predecessor-version":[{"id":6644,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/4181\/revisions\/6644"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/4188"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=4181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=4181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=4181"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=4181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}