The long-term legacy of the covid 19 pandemic and its impact on the commercial property sector remains unclear. We are mindful that at present many employees who would normally be office based continue to work from home despite the easing of restrictions implemented by the Government in response to the pandemic. There is the possibility that some companies will make permanent changes to their working practices and so it seems likely that the demand for office space may decline, with a resultant fall in values. Certainly there appears to be little prospect of noticeable rental growth in the immediate/medium term.
Shared Workspaces & Hubs
However it is not all doom and gloom. With businesses opting out of committing to long term lease or ownership there is likely to be increased demand for shared workspace hubs and serviced offices that can be booked on an occasional/sessional basis for meetings with colleagues and clients. Despite the increased popularity of video conferencing it is still no substitute for physical interaction with other people. Therefore landlords need to be responsive to the change in occupational demand and look how best to repurpose their assets and maintain their market appeal in a changing environment.
Conversion into Residential Properties
The deficit of affordable housing remains an issue in most parts of the UK property and this could offer another opportunity for the owners of what might have otherwise been considered redundant offices by converting buildings for residential use. Certainly there have already been a number of such developments in recent years, capitalising on the changes in planning legislation, facilitating such projects under permitted development rights.
At CSD we have a team of dedicated valuers, with many years’ experience and who are well-informed in the trends of an ever changing commercial property market. Therefore we welcome the opportunity to assist you with your valuation needs.
This blog article was written by Peter Gregory our Senior Surveyor.
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