Crossrail is now only 4 years off completion and with 70 miles of new line to serve over 35 stations, it is set to reduce average journey times and will increase London’s rail capacity by 10%. It has been predicted that Crossrail could add £5.5 billion in value to residential and commercial real estate around the stations of the route over the next 10 years. 

2014 has started where 2013 left off with strong economic data giving rise to renewed optimism about the UK economy. This is having a positive impact on property values. Tenants are becoming more confident about committing to space which is putting upward pressure on rents and importantly this is no longer confined to London and South East. 

Recent reports and analysis show that by last month commercial property values in the United Kingdom increased for the tenth month in a row.  Investment Property Databank’s figures demonstrate that the average value of commercial property, including retail, office and industrial space, went up to 0.6% in February compared with January, with a total return – which takes into account capital value and rental income – of 1.1%.

London looks to be on the rise – in more ways than one. The escalating prices of residential property is leading to a change on – and of – the horizon of the capital.

The property market in the north of England continues to grow as American REIT; American Realty Capital Global Trust has made an initial £57million investment into the property market in Sheffield and Bradford. The US firm has bought the Pomona Centre in Sheffield and the 117,000 sq. ft. Provident Financial office at 1 Goodwin Street, Bradford. American Realty has bought the two financial offices through its ties with finance house Moor Park Capital Partners.

How much space does an occupier need, this is extremely important and sometimes difficult to know. The rent is directly linked to how much space you take and therefore it is extremely important, especially for smaller, growing firms to be as efficient as possible and not allow for any wasted space. The old rule of thumb was 100 sq. ft. per person, therefore 1000 sq. ft. would be ideal for 10 people, and this would take into account for space for 10 employees to work, a small meeting room, boardroom and kitchenette.

Lately, there have been an increasing number of professionals in the built environment profession turning to the study of the relationship between buildings and organisations, especially the design of the office and the efficiency of the business performance. 

With sustainability being very important in all aspect of modern life, new developments are required to be ‘green’ energy efficient buildings. The energy efficiency of a building is generally measured through the efficiency of the running of the building through Energy Performance Certificates and BREAM ratings. This is a good measure of the buildings carbon foot print and waste management. 

According to British Land, the UK commercial property market is strengthening and not just in Central London but into the regions as well. From a Central London point of view, the level of interest for office occupiers has dramatically increased. The years after the recession and generally throughout the recession, the market was dependent on the TMT sector and was being held afloat simply from the tech firms. This saw new areas start to appear across Central London.

Much of the continuing success and prosperity of London’s current commercial property market is a result of overseas investment, which has been pumping funds into the capital in recent years. The city and its optimistic economic outlook, not least when compared to many EU countries, has been drawing investors from the Middle East and Asia in particular.