Commercial Agency Transactions & Trends - Industrial, Office & Retail
Since the onset of Covid restrictions in the UK, our office, industrial and retail agency teams have continued working hard for our clients and adapting how we are bringing their properties to market.
As some of the restrictions continue, we are confident in our ability to deliver results for our clients and find great spaces for changing businesses.
We're pleased to report that our commercial agency teams successfully exchanged on 121 deals totalling over 711,000 Sq Ft and counting between April and November. Within this, 97 leases were signed for 386,000 Sq Ft across the City, Fringe, and East London showing that businesses are looking ahead to life after the pandemic.
Over recent months and to help support these numbers, we have noticed some significant trends that are keeping the property market moving.
In common with all sectors, late March and early April 2020 saw the cessation of almost all industrial occupier activity. By the end of April, we began to see many operators requiring additional short-let space to support their supply chain through increased or predicted demand to service the health sector and food-focused retailers. By the end of the first lockdown, we saw renewed activity in the creative sector and last-mile operators. Such demand has been maintained for much of the past six months or so and is evidenced in our levels of take-up.
MOVING FURTHER AFIELD
Since April, the avoidance of travel by public transport has led to increased local demand around east London boroughs. There has also been a move to support local traders and a dominance for London village enquires, helping take-up in several of our core east London patches by independent occupiers looking to establish themselves or expand.
CONTINUED LONDON PRESENCE
Although we have seen increased office transactions in more suburban markets, there is a continued demand for maintaining a presence in London. Occupiers are actively looking for new offices to allow employees to have a place for meetings and maintain company brands and cultures where possible.
USE CLASSES CHANGES
The new use classes changes introduced on 1 September 2020 has increased enquiries significantly. We have had some great success placing alternative occupiers into space they previously wouldn't have been able to operate in. We have placed a rock climbing gym, cafes and bakeries in office space, which in turn is helping to bring a diverse mix to developments and local neighbourhoods alike. As we cover a variety of disciplines across offices, retail and leisure, we have been well-placed to help businesses find the right property fit.
Building on the standard rent-free window typically negotiated on commercial leases to reflect current trading conditions. We're working with clients who are happy to offer leases that incorporate stepped rent increases to minimise void periods, early breaks, or rent reviews to allow for re-basing rents to take advantage of the anticipated economic upturn.
TRANSACTIONS BY SECTOR - APRIL TO NOVEMBER 2020
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If you have any questions or would like to learn more details, please contact a member of our team.
- Mark Bolton - Director, Commercial & Investment Agency - firstname.lastname@example.org
- Neal Matthews - Director, Industrial & Logistics Agency - email@example.com
- Chris Collins - Director, Commercial Agency - firstname.lastname@example.org
- Jon Cuthbert - Director, City & Fringe Commercial Agency - email@example.com