The London commercial property market entered 2021 surrounded by uncertainty. Weak economic fundamentals and pandemic-related disruption affected every sub-sector, although in different ways. During the first three months of the year, the following themes emerged:
- Weak demand for office space with take-up rates below the 10-year average, which were balanced by exceptional demand for large industrial properties.
- Excess retail space continued pouring into the market, with the exception of retail businesses deemed essential (i.e., homewares, grocery, and discount shops).
- A sustained flight-to-quality, which was more evident in the office sub-market but also present in industrial properties.
Overall, the market was stable and showed greater resilience than expected. The quarter ended on a strong note and displaying moderate signs of improvement. Continue reading “Overview of The London Commercial Property Market Q1 2021”