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01 / A new landscape

The real estate landscape has changed irrevocably over just the last five years. A potent mix of covid-19, climate change, geopolitical events, new regulations and product evolution has made markets more uncertain and unsettled demand. Add the increased cost of living and disruptions to the flow of goods and labour, and it is easy to understand why supply chains, which have contracted and consolidated, have become much more risk-averse.

This has limited the number of new‑build schemes coming to the market, at a time when demand remains relatively strong for good-quality space with amenities, flexibility and strong sustainability attributes.

Existing building stock returning to the market at the end of lease periods often does not satisfy these requirements, and it is estimated more than 90% of such buildings over the next three years will have an EPC lower than B. At the very least, they will require upgrades to comply with energy efficiency standards before being leased again.

Traditionally, the default position for this old stock would be for it to be demolished and replaced with a new building that meets current needs. However, an increased awareness of embodied carbon has prompted the serious consideration of adaptive reuse rather than redevelopment, encouraged by planning requirements.

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