The UK commercial property market is a dynamic and ever-evolving sector, with businesses significantly changing their approach to the working environment they provide for their employees. In recent years, several notable trends have emerged, influencing businesses’ real estate strategies and reshaping the landscape of the occupational real estate market.
Four significant trends that increasingly influence how businesses approach their real estate strategy and choose a preferred building when looking to relocate include sustainability, the approach to building management, wellbeing, and building amenities.
Sustainability has become a top priority for businesses across various sectors, and the commercial property market is no exception. Investors and occupiers are increasingly looking for environmentally friendly and energy-efficient buildings that align with their sustainability goals. Sustainable buildings attract significant attention and demand, particularly from corporate occupiers as they seek to meet internal ESG goals.
In response, developers and landlords are focusing on retrofitting existing properties and incorporating sustainable design principles into new developments. However, a commitment from occupiers as to how they operate their space is also critical to meeting these sustainability goals. Building technology is improving the quality of data available to owners and occupiers, allowing for real-time monitoring of energy consumption and fine-tuning of mechanical and electrical systems.
The approach to building management has evolved due to the rise of remote working and flexible schedules. Office buildings are now managed by onsite and professional management teams, with a focus on transforming traditional offices into multifunctional spaces that cater to the changing needs of employees. These spaces blend the use of dedicated offices with other areas such as coworking areas, breakout lounges, collaborative spaces, and onsite amenities like cafes, gyms, and childcare facilities. Occupiers expect the onsite team to curate a more vibrant and engaging environment for their employees and clients.
Wellbeing has taken centre stage in recent years and is now an integral consideration in commercial property design and management. Employers recognize the importance of creating environments that promote physical and mental health, productivity, and happiness. Office buildings now incorporate elements such as ample natural light, biophilic design, ergonomic workstations, and access to green spaces. Landlords also invest in onsite amenities like fitness areas, wellness rooms, and relaxation areas, as well as a calendar of events and classes that promote mental and physical wellbeing.
The demand for high-quality amenities within commercial properties has significantly increased as businesses and employees seek convenience and an enhanced work-life balance. Developers and landlords now incorporate amenities like cafes and coffee shops, communal spaces, and meeting and presentation areas into the buildings. Central location with good public transport connections is also a factor in the selection of buildings. Campus developments that provide a mix of uses, such as commercial workspace alongside cultural destinations, residential areas, and hotels, have gained popularity due to the wide range of amenities they offer within close proximity.
The UK commercial property market is undergoing a transformation driven by the aspirations of occupiers and the demands of their employees and clients. Investors, developers, and landlords who understand and adapt to these trends stand to benefit by prioritizing sustainability, creating flexible and engaging office spaces, promoting employee wellbeing, and offering desirable amenities. The commercial property market can thrive in this new era, shaping the future of work environments in the UK and supporting businesses as they make this transition.
