Cushman & Wakefield RETHINKING: The Shape Of Real Estate 2040

DEMAND DYNAMICS

This report takes into account the behavioural, technological and

demographic demand-led drivers that will determine UK real estate requirements over the long term, highlighting the top 10 fastest growing sectors in the period to 2040. Understanding future real estate requirements through demand-led variables can identify imbalances in the UK real estate portfolio. Projecting forward, these imbalances can help those shaping the future of our cities – investors, developers, public bodies – to allocate land and resources to help satisfy future pools of demand, while reallocating away from areas that are expected to shrink. The considerable capital and carbon invested in existing property means that this is of considerable value in avoiding downside risk, as well finding repurposing and repositioning opportunities. To achieve this, we have produced a sector-by-sector outlook using a range of demand-led drivers to assess the trajectory of required supply over the long term, ultimately seeking to ascertain what sectors will experience the strongest growth through to 2040.

The shape of the real estate in 2040 laid out in this report, is also dependent on supply-side factors including the planning system, building regulations, sustainability performance requirements and land availability. These will react to the evolving demand landscape, as well as wider economic and political developments, and will define what proportion of the required space gets delivered. The outlook presented in this report should be taken in the context of these considerations.

RETHINKING: THE SHAPE OF REAL ESTATE IN THE UK

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CUSHMAN & WAKEFIELD