Commercial Property Review
2022 market looks upbeat
Upbeat tone in new year forecasts
2022 could be a year of recovery for the commercial property market, two leading forecasts have suggested, with Colliers’ ‘Forecasts for 2022’ predicting investment volumes will reach £65bn and CBRE’s ‘UK Real Estate Outlook’ also foreseeing strong growth despite lingering risks. According to CBRE, the office market is predicted to return to historical levels in 2022; Colliers expect an office occupancy of 75% to be the norm. On the industrial side, Colliers anticipates take-up topping 40m sq. ft for a third successive year. Demand for retail space is expected to be strong too, notably in prime commuter high streets. Both reports expect the Environmental, Social and Governance (ESG) agenda to dominate in 2022, with Colliers anticipating the ‘corporate stampede to net zero’ proceeding to ‘change all markets fundamentally.’ Likewise, CBRE believes tightening regulation will be the main strategic driver of change.
Jen Siebrits, Head of UK Research at CBRE commented, “Whilst the challenges of the last year are not quite yet behind us… the property industry can still go into 2022 with a renewed sense of optimism. Buoyed by a growing economy, real estate has real impetus for growth in 2022.
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