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Technology inseparable from property market in years to come

Technology inseparable from property market in years to come
2nd February 2015

Technology inseparable from property market in years to come

Strutt and Parker has released results of research it has carried out into likely influences on the UK property market over the coming years. 

The agency looked into potential trends in terms of use, lease models, and location, amongst others, garnering data from interviews, an online survey and research. 

The results emphasised the impact that the internet and internet-related technology has had so far on the UK property market, and indicated that even greater changes lie ahead as a result of progressive and rapidly changing technology. The ‘consumer’ is as linked to the changes as the technology itself. Retail parks, it was ventured, will strengthen their position as ‘click and collect’ hubs, while logistics will play a major part in development and expansion, given that the online retail market is likely to increase significantly. Logistics is the vital link in the chain between retailers – whether bricks-and-mortar or online – meaning that those who can deliver the quickest to the customer’s door will thrive. The research indicates that such logistic hubs will find their niche on the fringes of major cities. 

Retail parks, according to nearly 80% of respondents, will largely comprise leisure, food and drink establishments, appealing to the social rather than the shopping customer base. 

Respondents also emphasised the importance of the transport hubs of London – with popular areas driven by the imminent Crossrail lines – which will continue to attract tenants and therefore lead to rising rents. 

The burgeoning popularity of serviced offices will continue at a strong pace, as businesses continue to choose – or require – flexibilty of term and space and fuss-free negotiations. 

One of the conclusions of the research was that the pace of change in the TMT sectors may well be reflected in changing trends in the property market – which will undoubtedly lead to some interesting years ahead. 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.

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