As 2022 comes to an end and we look back over the year, it is true to say that it has been a bit of a bumpy year for commercial property. As the world comes out of the COVID-19 pandemic, we are beginning to see workspaces returning to a new normal. Businesses are beginning to find their feet, finding a balance between their business needs and requirements and employee preferences. We are seeing a world that is more concerned with sustainability, diversity, and employee well-being.

We have also had a year on the brink of a recession, the war in Ukraine, and soaring energy prices, making life even more complicated for many businesses.

All of these factors have come together in 2022, resulting in a more modern, forward-looking commercial property market, whilst also incorporating the important factors of a traditional workspace.

Here at Boxpod, we have noticed a range of changes and trends in the commercial property market, from the increase in demand for warehouse space to changes in the look of the high street. Many of these were predicted in our article last year – Commercial Property Trends in 2022. So, without further ado, we will look back on how commercial property has changed since last January.

Prediction: Higher Quality Commercial Properties

Back at the beginning of 2022, we predicted that the quality of commercial properties will be higher due to the fact that they are essentially competing with home or other remote workspaces. This is certainly the case in the UK at the moment. In fact, we are, in many cases seeing more and more employees looking to return to the workplace on at the least, a hybrid basis (an estimated 60% of businesses), and for some, a full-time basis.

Having said that, many employers or commercial property landlords are improving their collaboration capabilities, as collaborative working becomes increasingly important in the business world.

The extremely hot temperatures that we saw during the summer and recent freezing weather spells have also drawn our attention to the environment and climate change even more so than before, and sustainability and green credentials have certainly become a more important factor when it comes to choosing a commercial property, who we want to work for, and who we choose to give custom to.

With the rise in the cost of energy bought about in part by the war in Ukraine, energy saving has become even more of an issue for businesses, so insulation, using low-energy lightbulbs, and changing working practices have become even more important to them.

Prediction: Incorporation of Technology

We predicted that technology was going to play an increasingly important role in the workplace and this has definitely been the case. Using video conferencing is now the norm for many businesses, and hot desking is, standard business practice, for example.

It is estimated that, for example, wearable technology in the workplace can increase productivity by 8.5% and job satisfaction by 3.5%. This is due to employees being able to do things like multitasking through the use of voice commands and notes taking on their wearable tech.

Technology such as AI, robotics, and automation are transforming the way that we run our businesses and this is, in turn, changing the way that the modern workplace is looking and our customers’ requirements.

Prediction: Higher Demand for Warehouse and Storage Space

It is estimated that Britain spent about £110 billion on e-commerce in 2022, continuing the upward trend that we have seen in the past few years of online shopping. This has led to an increased demand for warehouse and storage space as concepts such as drop shipping have become more and more popular.

Out-of-town retail units have continued to be used as ‘click and collect’ hubs and for warehouse storage as well as often used by ‘budget’ mainstream food and clothing shops.

Prediction: Data Warehouses

Research shows that the world produced over 74 zettabytes of data in 2021 – an increase of 25% since 2020. It is expected that this amount increased again in 2022, therefore, increasing the need for the storage of this data – data warehouses or data centres. Data warehouses typically take up a lot of space and employ complex technology that needs to be securely housed and efficiently cooled to prevent overheating.

The UK’s data centre market is booming and only looking to grow over the next few years. The increased use of concepts such as the Internet of Things and elements of smart cities are likely to only increase demand for these data storage facilities.

Prediction: Localised Retail

At the beginning of the year, we predicted that the face of the high street would be changing, perhaps through growth in experiences and places like cafes, and not necessarily shops. We also predicted that there would be a growth in the number of towns and cities with clean air zones, less traffic, and more pedestrianised areas.

We have seen more and more people (especially young people and families) looking for more than just a retail experience on the high street. This means that they have become centred around the incorporation of technology into retail, experiential services, and leisure facilities – often being housed in buildings that have previously housed large department stores.

In 2021, clean air zones were introduced in Bath, Birmingham, and Portsmouth, with additional zones introduced in 2022 in Bristol, Manchester, and Bradford, and more cities are likely to be added in 2023. This means an increased number of people on foot in town centres as well as using public transport and an increased provision of electric car charging points.

Final Thoughts

When it comes to commercial property in the UK in 2022, we have seen a general shift towards an increase in e-commerce and the movement of business towards the use of technology and online capabilities. From the incorporation of technology in the workplace to the storage of products and changes in the high street experience.

Here at Boxpod, we have a range of commercial properties for your perusal, so, regardless of your needs, why not take a look at what we have to offer?

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