Developers and landlords keen on expanding their portfolio will be interested to find out more about what the big commercial property trends will be this year.
- City offices
Office real estate is going to become more popular in 2023, particularly in city centre and suburban areas, as they are regarded as an attractive risk-adjusted opportunity.
Deloitte acknowledges there will be a “record demand for data centres” as more businesses adopt digital technologies, cloud computing and storage.
What’s more, more and more companies are urging employees to return to the office to boost productivity, which will see more demand for commercial premises than in the last few two years.
- Falling values
Expected rising inflation levels could affect the real estate market this year. Together with the increase in the cost of supplies and energy prices, this is likely to impact the value of commercial properties.
However, PricewaterhouseCoopers said this presents a “great buying opportunity for core investors that are still under-allocated to the sector”. It notes the “asset class is long regarded as a hedge against inflation”, which makes it more appealing to investors, particularly if they can get a good deal on a property.
- Environmental goals
Environmentally-friendly buildings will see an increase in demand over the next year, which means developers and investors will only be interested in assets that meet energy-saving targets.
CBRE stated: “Buildings that do not match the environmental goals of large occupiers will be the most difficult to let and are likely to experience long void periods.”
Investors might consider getting into commercial property investments in 2023, in which case seeking advice from property solicitors in Hull is worthwhile to avoid any unnecessary financial risks.