{"id":6588,"date":"2022-06-28T11:21:57","date_gmt":"2022-06-28T10:21:57","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=6588"},"modified":"2022-08-19T11:05:25","modified_gmt":"2022-08-19T10:05:25","slug":"property-market-review-june-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/06\/28\/property-market-review-june-2022\/","title":{"rendered":"Commercial Property Market Review – June 2022"},"content":{"rendered":"
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Quality is key for London office space <\/strong><\/p>\n<\/div>\n\n

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After its pandemic-induced hibernation, London\u2019s office\nmarket has kicked back into life, with demand from Central London occupiers in\nQ1 2022 more than 34% above the five-year quarterly average, according to\nSavills.<\/strong><\/p>\n<\/div>\n\n

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As confidence returns to the office market, more Central\nLondon occupiers are increasing their total space (29%) than decreasing it\n(13%), although those seeking to remain at a constant level remain the majority\n(41%).<\/p>\n<\/div>\n\n

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Office expectations have been reshaped by the pandemic,\nanalysts suggest, with more occupiers now seeking the highest quality space.\nAround 90% of all new office lettings in London have been for buildings of\nGrade A standard.<\/p>\n<\/div>\n\n

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Meanwhile, office design and layout have also evolved\npost-pandemic in response to the rise of hybrid working, as well as a growing\nemphasis on wellbeing in the workplace.<\/p>\n<\/div>\n\n

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Warehouses resilient despite challenges<\/strong><\/p>\n<\/div>\n\n

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Warehouses can maintain their recent strong performance,\nindustry insiders are predicting, despite the twin threats from supply and\ndemand currently weighing on the market. <\/strong><\/p>\n<\/div>\n\n

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Supply chain disruption has driven sustained demand for\nwarehouse space by pushing more businesses to onshore their operations. Growing\nnumbers of smaller e-commerce businesses have also helped fuel strong demand. <\/p>\n<\/div>\n\n

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As a result, vacancy rates are now \u2018critically low\u2019<\/em>,\naccording to CBRE, at about 1.5%. Going forward, the supply of new stock is likely\nto remain constrained given the difficulty in finding new sites and the delays\ninvolved in seeking planning approval.<\/p>\n<\/div>\n\n

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Conversely, demand could present a challenge, after Amazon\nannounced in May that it had overextended during the pandemic. The e-commerce\ngiant took a quarter of all UK warehouse space leased in 2020 and 2021.<\/p>\n<\/div>\n\n

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Robust recovery for hotel investment<\/strong><\/p>\n<\/div>\n\n

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UK hotel transaction volumes have exceeded \u00a31.5bn in the\nfirst four months of 2022, according to research by Knight Frank, a 40% rise on\nH1 2021\u2019s total investment volume.<\/strong><\/p>\n<\/div>\n\n

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Portfolio hotel transactions represented almost 65% of\ninvestment activity, a significant year-on-year rise, while private equity\ninvestors poured more than \u00a31bn into the sector.<\/p>\n<\/div>\n\n

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London secured about \u00a3750m of hotel investment in the period,\nsignificantly boosted by the sale of Point A Hotels for \u00a3420m. Another notable\ntransaction saw Frogmore and C1 Capital jointly acquire three hotels, including\nthe Hilton London Olympia, for \u00a3150m.<\/p>\n<\/div>\n\n

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The rest of the UK saw a similar level of activity (\u00a3800m); the\nPig Hotel Group\u2019s acquisition by an affiliate of KSL Capital Partners for an\nundisclosed sum was one of the major transactions so far this year.<\/p>\n<\/div>\n\n

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Philippa Goldstein, Senior Analyst at Knight Frank, pointed to a \u201crobust recovery\u201d <\/em>for the sector. She commented, \u201cWith investors taking a long-term view, buoyed by the upturn in the cycle, investment levels are expected to remain strong throughout 2022, despite quality, sizeable single asset hotel stock remaining in short supply.\u201d<\/em><\/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\nguaranteed. It does not provide individual tailored investment advice and is\nfor guidance only. Some rules may vary in different parts of the UK. We cannot\nassume legal liability for any errors or omissions it might contain. Levels and\nbases of, and reliefs from, taxation are those currently applying or proposed\nand are subject to change; their value depends on the individual circumstances\nof the investor. No part of this document may be reproduced in any manner\nwithout prior permission.<\/em><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Quality is key for London office space After its pandemic-induced hibernation, London\u2019s office market has kicked back into life, with demand from Central London occupiers in Q1 2022 more than 34% above the five-year quarterly average, according to Savills. As confidence returns to the office market, more Central London occupiers are increasing their total space […]<\/p>\n","protected":false},"author":12,"featured_media":6590,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,134],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/6588"}],"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\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=6588"}],"version-history":[{"count":4,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/6588\/revisions"}],"predecessor-version":[{"id":6643,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/6588\/revisions\/6643"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/6590"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=6588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=6588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=6588"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=6588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}