Cushman & Wakefield RETHINKING: The Shape Of Real Estate 2040

OBSOLESCENCE EQUALS OPPORTUNITY

FORECASTED SHARE OF UK STOCK BY BROAD SECTOR

0

4

5 %

0

2

As some sectors wane and others prosper, the acute supply of land in key locations – particularly in city centres – and the increasing focus on sustainability will mean that repositioning and repurposing will be the first point of call for value-add opportunities. If the building is well-located for the sector (meaning strong transport links plus a surrounding business and amenity ecosystem for an office property, for example) and there is sufficient potential for rental uplift, then repositioning is the quickest and easiest solution. This retains the property’s existing use but modernises and improves the offer, making it comply – or ideally exceed – the requirements of current occupiers. In oversupplied areas, repurposing to a different use, or uses may be the best option. Approaches will vary from building to building, from altering goods access to stripping back assets to frame, however, the goal is the same: to achieve the spatial

11 %

3

2

0

7 %

2

5

0

14 %

0

11 %

2

19 %

56 %

48 %

27 %

44 %

31 %

28 %

RESIDENTIAL (EXC OWNER OCCUPIER)

standards needed for use by locally undersupplied alternative sectors.

LOGISTICS & INDUSTRIAL

RETAIL & LEISURE

OFFICES & LIFE SCIENCES

RETHINKING: THE SHAPE OF REAL ESTATE IN THE UK

9

CUSHMAN & WAKEFIELD