2021 started at a sluggish pace for the London commercial property market. During the second quarter of the year, the market evidenced signs of recovery. Office, retail, and industrial markets registered an uptick in activity starting in April.
The main themes observed this quarter were:
- A strong appetite for high-quality office and industrial space.
- Growing investment volumes.
- Vacancy rates kept increasing, but they’re still lower than expected.
The London office market started to show signs of recovery during the second quarter of the year. Investment volume totalled more than £2.5bn, confirming the renewed confidence of investors in the future performance of the city’s office market.
Transaction levels were up, with most transactions involving Grade A space, sub-lets and dominated by the creative, technology sectors, non-profit and public sectors. Large transactions centred around the EC2 and SE1 postcodes.
Continue reading “Overview of The London Commercial Property Market Q2 2021”
Over one year after wide-scale remote work was implemented across the UK, approximately 60% of the workforce is still working from home in either a full or part time capacity. As plans to lift all lockdown restrictions get closer, many businesses are preparing to go back to the office. However, after months working remotely, many employees and business owners are finding that the return to work can be both exciting and stressful.
Research undertaken in economies that have already returned to office-based work shows that anxiety and stress are both common reactions among office workers in the post-COVID era. In this article we’ll look at how to manage these feelings and make the return to the office as pleasant as possible. Continue reading “How to Deal with the Stress of Returning to the Office after a Long Layoff”
The London commercial property market entered 2021 surrounded by uncertainty. Weak economic fundamentals and pandemic-related disruption affected every sub-sector, although in different ways. During the first three months of the year, the following themes emerged:
- Weak demand for office space with take-up rates below the 10-year average, which were balanced by exceptional demand for large industrial properties.
- Excess retail space continued pouring into the market, with the exception of retail businesses deemed essential (i.e., homewares, grocery, and discount shops).
- A sustained flight-to-quality, which was more evident in the office sub-market but also present in industrial properties.
Overall, the market was stable and showed greater resilience than expected. The quarter ended on a strong note and displaying moderate signs of improvement. Continue reading “Overview of The London Commercial Property Market Q1 2021”
As a renowned global business hub, the city of London has attracted some of the world’s most influential companies. This post looks at some of the first-class office spaces that global brands have chosen as their London base of operations.
The e-commerce giant has been expanding its physical footprint in London since 2010. In 2017, Amazon moved into a 600,000 square foot building in Principal Place, right in the heart of Shoreditch. Amazon’s innovative character found a match in this Shoreditch building, which also serves as the home for the company’s Local Development Centre.
This building accommodates the company’s head office, a wide range of retail and public spaces, as well as Amazon lockers and restaurants. The 15-storey building also features two roof gardens, top formal and informal workspaces, private phone booths, meditation spaces, a fitness room, and world-class views across the London skyline. Reports from early 2020 suggest that Amazon is currently in the process of searching for more office space in London, illustrating their desire to remain in the British capital moving into the future.
Continue reading “Iconic and Influential Office Spaces in London”
London serves as a hotspot for commercial property and is known to have one of the most competitive real estate markets in the world, with a wide variety of providers and prospective occupants interacting daily to ensure that businesses conduct their work in an ideal environment. Due to this competitiveness, it is vital that businesses understand pricing dynamics before signing a lease for an office space, retail shop, or industrial premises in the British capital. In this post we will examine how commercial property in London is valued and how these valuations impact rental rates.
What is a Commercial Valuation?
Valuation is a process that aims to determine the value of a commercial building. This process often occurs when a property changes hands (either by being sold or leased), or for tax and insurance purposes. As a prospective tenant, understanding the valuation process can help you determine if the price of the property you’re interested in is fair and competitive.
Continue reading “How to Value a Commercial Property and Determine Rent in London”
Recent events have illustrated the fragility of businesses in highly competitive markets. Small businesses and start-ups were thrown into disarray as potential clients, suppliers, customers, and employees were all heavily impacted by the new normal of the COVID-19 pandemic. Businesses across the world, both new and established, turned to support mechanisms to stay afloat. Business grants and incentives, often provided by the government or local councils, served as the difference between some businesses surviving and being forced to shutter their doors. These grants, often characterised by non-existent interest rates and obligations to pay back, are highly sought after in the London business scene, particularly in times of uncertainty.
Commonly regarded as one of the world’s best places to establish a business, London is home to countless such grants, loans, and incentives, ranging from small monetary rewards to life changing assistance packages that allow businesses to quickly establish themselves and acquire the tools or equipment necessary for continued success.
Continue reading “Benefits and Incentives for London Small Businesses and Startups in 2021”
Simon Sinek, a British-American motivational speaker, author, and podcaster, stated that “When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.”
This single quote encapsulates why good office morale and workplace engagement is proven to lead to better business, more positive customer and client interactions, increased productivity, higher employee retention, and an overall healthier working environment. However, ensuring that employees are excited and motivated to come to work each day can be a tough task, one that businesses across the world still struggle to achieve to this day. Here are 10 ways to improve office morale and cultivate engaged and motivated staff.
Continue reading “10 Ways to Improve Office Morale”
London offers a wide variety of coworking spaces located in high spec buildings, complete with modern facilities, no initial capital commitments, and excellent flexibility with no exit costs.
Coworking spaces are highly appealing to businesses for a number of reasons, chief of which being the fact that they’re commonly plug ‘n play, no matter if you’re looking to rent a single desk or an entire floor. With coworking spaces there is no need to worry about buying furniture, committing time and effort to fit outs, and negotiating tedious lease agreements.
In addition to their plug ‘n play nature, coworking spaces in London provide:
- Flexibility: In terms of the cost and length of contracts, which makes this type of space suitable for small businesses and helps them manage their finances better during the initial stages.
- Range of Options: The growing popularity of this office space arrangement means that there is a wide range of options to choose from.
- High Specifications: Modern facilities in high-spec office buildings, whether they are purpose built or refurbished.
- Networking Opportunities: An open plan and communal atmosphere that promotes collaboration, networking, and can help establish new partnerships that could be crucial to the development of a business project.
- Inexpensive Start up: No initial capital or financial commitment required, and no exit or disposal costs.
- London Prestige: Provides an opportunity to enhance brand image due to London’s prestigious reputation as a global business hub.
Continue reading “An Overview of Coworking Spaces in London”
Following the slowdown of the London’s commercial real estate market due to onset of the Covid-19 pandemic, activity levels have resumed during Q2, although cautiously. Transactions proceeded very slowly over the past three months, since fewer lenders are active and most tenants are on a wait-and-see mode. As a result, only a handful of transactions took place between April and June.
According to market analysts, it is still too early to quantify the true impact of the pandemic on commercial real estate, but the following observations ring true for the city: Continue reading “Overview of The London Commercial Property Market 2nd Quarter 2020”
London’s commercial property market entered 2020 with forecasted supply constraints and substantial rental growth. During the initial weeks of Q1, the market moved as anticipated.
Take-up levels were off to a slow start of the year, which translated into above-average availability. Average vacancy rates in Central London neared 4%, but they increased to 10% in East London. Office take-up in the West End and the Tech Belt remained stable. The business services sector was behind most transactions, accounting for approximately a third of all deals during Q1. Other key occupiers were banking, finance, technology, and creative.
The largest deal of the quarter involved offices in the EC2 postcode, although overall, the City of London remained the most sought-after destination. Outside of the City, Hammersmith and White City commanded the largest number of enquiries.
Continue reading “London Commercial Property Market 1st Quarter 2020”