While the market has persevered through a series of challenges in the last few years, indications are that the election may settle the market down rather than introduce more uncertainty. In fact, the evolving political landscape and change in government should open up opportunities for businesses looking to rent commercial or industrial property in 2024.
Sustainable buildings will continue to be in high demand
The underlying trends in commercial property are unlikely to change as a result of the election. A well-documented ‘flight to quality’ is already underway and will continue over the rest of 2024 and beyond.
Business owners are no longer satisfied with substandard properties and have proven to be willing to pay a premium for space that is modern, sustainable and future proof. ESG reporting requires that businesses cut their environmental footprint on one hand; on the other, the general public and your potential employees are all more conscious of their climate impact and are showing a preference for businesses which take their environmental obligations seriously.
That means Grade A buildings with high BREEAM ratings and strong energy efficiency credentials will be in high demand as they have been all year. Extra features like cycle storage and EV charging on site will only increase the appeal.
Sites like Botany Bay Business Park which include all of the above are a great example of how the market is reacting to people’s desire for sustainability.
Economic relief to boost e-commerce
A new government with a huge majority means that we can expect long-term stability for the first time in some years. That could translate to greater economic surety, lowering interest rates and more money in people’s pockets.
Those conditions traditionally lead to greater spending power, and no sector will benefit more than e-commerce. These businesses have been busily expanding in recent years with a preference towards a high number of smaller industrial sites which give easy logistical access to the whole of the UK.
As per our Q2 industrial and logistics property forecast, expect this trend to continue post-election and smaller industrial units to become even more popular.
The boom in e-commerce and the strength of the UK manufacturing sector makes well connected, high quality industrial units a precious commodity.
Good examples of industrial space that is set up and ready to accommodate e-commerce businesses are Astmoor Point Runcorn and Gemini Point Peterlee.
Footfall in shopping centres to increase
Another area that will benefit from greater economic stability and increased disposable income is shopping centres. These centres have been quietly having a resurgence in recent times as they are modernised and become a destination that people want to spend time in, for example through the development of food and beverage clusters.
A Savills report from June 2024 shows that rental yields in shopping centres are higher than any other kind of commercial property, at present retailers sense the opportunities on offer with this type of property.
If you are looking for shopping centre retail units to rent, the post-election period is likely to be the ideal time. Economic stability leading to more disposable income, combined with modernised shopping centre offerings like those found at the Brunel in Swindon or North Point in Hull and St Peter’s Mall in Derby, could make this the start of the next upturn.
Want to find commercial property to rent? Browse our available properties and get in touch with the team today.