Rapid urbanisation and economic uncertainty are bringing an increase in investors of the alternative sectors over commercial property. 2018 is already starting to see an investor demand in Student Housing, the Private Rented Sector and Healthcare, as social changes bring in new opportunities to grow in these sectors.
Why the sudden growth?
Alternative markets often offer the security of longer leases that are preferred by established investors, meaning that regardless of which way the economy turns, they have some stable investments running on a longer term. With the uncertainty of Brexit and the current economic climate, the alternative markets are likely to become the backbone of the property industry over the next few years.
Technology is changing the world
An increase in data centres means there is a continuing demand for big sheds in the industrial sector. With more people than ever shopping online, the market is stronger than ever before down to an increase in parcel delivery services and distribution centres. More land is required on the edges of cities to build warehouses for distribution of products, meaning these are key areas for investment and will continue to grow the market in the future.
Office space demise?
Though it’s true that the end of the 9 to 5 and the introduction of more flexible working in recent years means that more people are working from home rather than in an office, there will always be a need for this market. Instead, we will actually see more agents investing in property marketing and branding, as a way to attract more buyers and businesses to their property. 2018 will be all about how you sell your commercial property with fresh branding and using retargeting techniques to ensure you reach the right people.