The Law Society Gazette quotes Cara Imbrailo on UK commercial property trends
Despite the impact of last November's Budget on commercial property investors' confidence, lawyers are reporting that optimism is returning to the UK market.
Nonetheless, property lawyers and the investors they advise must navigate a changing landscape: the return of office working, expansion of sustainability requirements, and introduction of leasehold reforms.
The Law Society Gazette suggests that commercial property has been in flux post-pandemic and that "while return-to-work mandates have increased demand for office premises, a two-tier market has emerged, with buildings in core locations offering occupants on-site amenities and with higher green credentials attracting the most interest."
Recent figures published by Savills show that since 2020, rental growth rates for prime and secondary properties in central London, which once followed a similar trajectory, have diverged significantly. While prime rents have grown 11.8%, secondary rents are up just 4.8%. The same report found that leasing activity in central London was up by 18% on the same quarter in 2024, amid ‘robust levels of demand’. Demand in core locations has kept vacancy rates low.
Cara Imbrailo, Partner in our Real Estate team, speaks with the publication about noteworthy trends in commercial property.
The office is recognised as a genuine retention tool. So, if you can’t offer an office environment that’s worth commuting for, as a company, you’ll be at a competitive disadvantage.
"There was a first generation of green clauses, which were on the lighter green side, but as they have become more commonplace, over the last few years, with the latest version of the Green Lease Toolkit, published by the Better Buildings Partnership, we have seen further advances and tweaking to sustainability obligations.
Read the full article in the Law Society Gazette here.
