Asset Bay

A strong finish to 2021 Looking at the UK commercial investment volumes, there were five months in 2021 at or above the five-year average

For some time, commercial property has presented investors with a potential solution for the disparity between supply and demand in the residential sector. With supply lagging, investors have turned to conversion projects like turning an old office building into flats. As such, this has partly driven the revival in the commercial market, but there are some trends that perhaps have had a greater role.

Storage units and warehouses outperformed other commercial properties during the pandemic. In 2021, the number of sales in the industrial arena rose by 28% from 699 to 892 transactions. Simultaneously, the value of these transactions grew by 57% to £16m last year. Perhaps this is relatively unsurprising, considering the online shopping boom and the need for infrastructure to fulfil the demand for storage and distribution facilities. With these numbers in mind, it is fair to say that the industrial sector has contributed significantly to the recovery of the commercial market.

Elsewhere, with 38% of UK working adults reporting they regularly work from home on a weekly basis, many employers have turned to prime office space in a bid to encourage their workforce back into the office as much as possible. As such, transactions for office space increased in 2021 by 3% and £18.2m was pumped into the sector.

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