In 2017 the amount invested in offices had grown 30% from the previous level in 2016. The high level of uncertainty caused by Brexit and the minimum energy efficiency standards act (MEES) has all contributed to this increase in investment.
The vote to leave the European Union and the uncertainty caused as a result has meant that many investors have looked to put their money into British ‘bricks and mortar’ and more specifically, the British commercial property sector which includes Offices. As a result, over 7.7 billion pounds was invested into commercial office space outside of London in 2017 which was a 30% increase from 2016.
The demand for offices has also been affected by the minimum energy efficiency standards which restricts landlords from letting a property with an EPC standard of F or lower. As a result, many older office buildings have become redundant and have since been converted into residential buildings. The planning system has expedited this this process by allowing permitted development rights for the conversion of offices to residential premises under Class O subject to meeting the relevant criteria. The permitted development rights have therefore contributed towards an already dwindling supply of office space due to failure to comply with the new MEES. The lack of supply of new office developments and the relatively stable demand for new office buildings has led to higher rents which in turn has led to higher capital values.
We are able to assist with a variety of services in relation to offices or commercial property in general, ranging from planning advice and valuation through to portfolio and property management.