Year in Review: Insights, Evidence & What's Next

2025 Insights

• A tenant-led market saw occupiers prioritise location over specification, targeting secondary space to reduce costs, while landlords had to adopt more flexible and creative approaches to secure lettings.
• There was strong demand for units under 5,000 sq ft across inner London, with occupiers actively seeking both new Grade A accommodation and well-presented secondary or refurbished space.
• Occupiers were increasingly demanding higher power capacity to support automation, robotics and EV fleets, meaning locations with strong grid availability were highly sought after and commanded a premium.

These trends became particularly clear when looking at our activity over the past year:

Units 6 & 8, Forest Trading Estate, Priestley Way, Walthamstow, E17 6AL

The demand for smaller units has been a defining feature of the inner London market, with occupiers showing flexibility around specification in return for the right location and value. Earlier this year, this trend was reflected in our successful letting of a refurbished warehouse to Crowbond, an established grocery distribution business, demonstrating how a well-presented space continues to attract strong covenant occupiers seeking practical, efficiently sized accommodation.

Switch 74, 43 Suez Road, Enfield, EN3 7SN

The shift towards power-hungry operations has placed a clear premium on assets with strong grid capacity and future-proofed infrastructure. A clear example is Switch 74, a well-specified new build unit featuring low site coverage, high eaves and a solar PV system, which offers significant power capacity and was placed under offer just a few months after practical completion, underlining how quickly the market responds to buildings that meet these evolving operational demands.

Langhedge Industrial Estate, Langhedge Lane, Edmonton, Tottenham, N18 2TQ

The tenant-led dynamic has been clearly reflected at Langhedge Industrial Estate in Tottenham, where value-driven occupiers have favoured well-located, refurbished space over higher-spec alternatives. Units ranging from 900 to 7,500 sq ft have seen strong demand, with 10 lettings completed throughout 2025, demonstrating how competitively priced stock combined with a flexible, pragmatic landlord approach continues to outperform in a cost-conscious market.

Looking to 2026

• We expect stronger demand for Grade A mid-box warehouses across North and East London.
• While supply is currently ample, landlords who offer flexible lease terms and incentives are likely to attract strong occupiers and help ease the imbalance.

2025 Insights

• Rising borrowing costs and regulatory and policy changes have made it increasingly challenging for developers to deliver schemes.
• Buying power within the wider development market has weakened, leading to greater caution in an uncertain environment.

Our Land team saw this first hand through a number of instructions completed in 2025, including the following:

 

Rom Valley Gardens, Rom Valley Way, Romford, RM7 0AE

At Rom Valley in Romford, Strettons successfully sold a cleared 7-acre former ice-skating rink site with hybrid planning consent for 972 dwellings on behalf of the LPA Receivers. Against a backdrop of rising borrowing costs and a more cautious development market, the sale highlights the continued demand for strategically significant development sites. The purchaser will review the existing consent, enabling a mixed-use, residential-led scheme that will bring much-needed new homes and amenities to the area, supporting Romford’s ongoing regeneration.

Sinclair's Laundry, 199 Brettenham Road, Edmonton, London, N18 2HF

Strettons exchanged an acre site which consisted of several buildings; a single storey brick north lit warehouse, two storey building and a single storey metal clad warehouse. The site has historically been used as a commercial laundry. A sale was agreed with a studio operator whose goal was to convert and refurbish the site. In a market where rising borrowing costs and regulatory changed are creating greater caution, interest came from both residential and commercial developers as well as commercial businesses, reflecting the strong demand for well-located, flexible assets that can adapt to evolving market conditions.

Crown And Mayer Parry Wharf Bidder Street Canning Town London E16 4ST

Strettons has agreed the sale of a 4.65-acre former scrap yard at Crown Wharf to a joint venture between L&G and Goldacre Ventures, subject to planning approval for a 1 million sq ft urban hyperscale data centre. In a development market tempered by rising borrowing costs and regulatory uncertainty, this scheme represents a creative alternative to heavy manufacturing, delivering employment opportunities and integrating carefully within the surrounding residential area. The sale highlights how well-located, flexible sites continue to attract forward-thinking investors despite wider market caution.