Commercial & Industrial Property Terrain

As we progress into 2021 we see the property market coming out of the disruption and finding its footing as a stable asset class. With Landlords and tenants trying to navigate the unpredictability of the market, we have seen the sector self correcting as pricing and space requirements normalise to suit the market and the end user. The office market, although subdued and facing a run off will start picking up again as the workforce heads back to the offices and space requirements start ticking up. The saving face for investors in the asset class is that there are opportunities in residential conversions and properties changing hands for very good prices.

 

Retail is in a continuous flux as investors in this sector are yet to understand or conceptualise the full extent of e-commerce on the physical store. The real result of the disruption will be visible when we return to normalcy.

Industrial property on the other hand is churning out returns as demand is growing consistently. The demand is led by a plethora of reasons mainly being e-commerce. The other forgotten reason for the rise in industrial and logistical warehouse development and demand is the ageing and inefficiency of most of the properties in this asset class.The latest development technology and specs for industrial space has led to a demand for newer efficient buildings than older and inefficient buildings that are out of sync with the requirements of modern industrial space.