What are the benefits of using a local conveyancer?
The UK’s commercial property market has shifted since the Covid-19 pandemic in 2020.
Increased demand for sustainability and accessibility means businesses face a changing landscape where environmental and people concerns are paramount.
This article explores five trends shaping commercial property, giving you what you need to know to make sound commercial property investments.
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1 – The Sustainable Property Surge
The concerns of today’s sustainability-conscious tenants have encouraged developers to go green with energy-efficient air conditioning systems, sustainable materials, and waste reduction programmes.
With reports showing that eco-friendly commercial spaces are some of the most desirable properties on the market, it’s no wonder that businesses are keen to get green certifications.
Meanwhile, buildings with superior Energy Performance Certificate (EPC) ratings are becoming more attractive to tenants and investors.
What does this mean for you?
This increased demand for sustainable properties means investors prioritise green developments for long-term financial and environmental benefits.
Investing in sustainable properties this year could prove profitable.
Always seek legal and financial advice before investing.
2 – Hybrid is here to stay
Since the pandemic ushered in the hybrid and remote work era, businesses have been trying to find the balance between office space and wasted space.
While some companies initially downsized, recent trends show a spike in demand for quality office spaces. Even international organisations like HSBC are reconsidering their shift to smaller spaces, realising the need for more room for face-to-face working.
Meanwhile, the shift to hybrid working has seen traditional long-term leases replaced by flexible, short-term arrangements where companies only pay for the workspace they use.
What does this mean for you?
Moving to flexible workspaces means negotiating and understanding new lease terms that protect your need for flexibility.
Get expert guidance here.
3 – The Rise of Regional Commercial Hubs
Towns like Durham are attracting investment as higher costs in London encourage businesses to explore regional hubs.
Lower rents outside the capital and other big cities make operations more cost-effective for many businesses, while recruitment from nearby talent pools boosts the local economy.
As the demand for regional commercial hubs grows, expect places like Consett to offer a genuine alternative for businesses wanting to operate outside the more traditional city locations.
What this means for you
Investing in regional areas can give you access to untapped markets and growth potential.
As North East conveyancing solicitors, Toomey Legal has in-depth knowledge of the regional property landscape.
4 – Energy Efficiency & AI
Being energy efficient is a smart move for modern businesses. Green technology reduces costs, positively impacts the environment and boosts your sustainability.
Advances in AI and ‘big data’ allow investors and businesses to predict demand, improve property management, and optimise rental rates with up-to-the-minute insights.
As smart thermostats, automated security systems, and other wireless devices become more incorporated into the Internet of Things (IoT), businesses that embrace these trends will be ahead of the competition.
What does this mean for you?
While moving towards smart buildings and technological integration makes sense, it also introduces privacy policy and data protection concerns.
For example, businesses leasing smart buildings will need detailed lease agreements to protect their intellectual property.
The UK Economy & Beyond
The UK’s property investment market showed signs of improvement in 2024.
Capital values started to rise, rental growth was a healthy 3.6% per year, and investment volumes increased 20% in 2023.
2025 offers growth opportunities, too.
Investment specialists Savills predict a much-improved year for retail and office space, offering an overdue post-pandemic boost for both commercial properties. The article also forecasts strong commercial real estate growth.
However, as businesses respond to the Labour government’s first budget under Keir Starmer and Trump returns to the White House, the market may need time to settle down in early 2025.
What does this mean for you?
Although commercial property investment looks promising, local, national and international factors can create uncertainty at any time.
Conveyancing solicitors like Toomey Legal help your business adapt to market changes, providing constant support with your property purchase.
In Summary
From sustainable development and regional expansion to flexible workspaces and AI integration, it’s an exciting time to explore investing in retail and office spaces and introducing green technologies to your business.
However, commercial property investments come with risk.
That’s why navigating trends and negotiating secure, lawful commercial property deals takes expert advice from qualified local experts.
Toomey Legal offers you tailored support to make informed investment decisions based on green certifications, favourable lease terms, and ESG compliance.