The 2016 UK Office Market Predictions have been announced.

In 2016, the commercial property sector in the United Kingdom should see some progress. According to James Roberts, the Chief Economist at Knight Frank. Sale in Qatar | Property Hunter

Mr. Roberts anticipates the following commercial market trends in the United Kingdom in 2016:

The availability of bank debt is greater.

Quantitative easing is already underway in the Eurozone, and we expect it to continue well into 2016. The United Kingdom, on the other hand, will lift rates next year, and the financial markets will price it in. This could lead to a carry trade, in which UK banks seeking higher interest rates with surplus cash from the Eurozone. As a result, bank origination teams will be pressed to put the latest funds to work as soon as possible. We believe that if lending is increased, the growing evidence of rental growth would support UK commercial property.

A change in the average buyer's nationality

In recent years, foreign investors have made unparalleled acquisitions of commercial property in the United Kingdom. We anticipate continued international interest, but the nationalities of the buyers would most likely change. Previously, buyers from emerging market countries like China and Malaysia were interested in the market. The economic downturn in China, as well as the crash of many commodity markets, would almost certainly have an effect in 2016. We expect less competition from emerging market investors and some sales to repatriate earnings. With the US Dollar at an all-time high, the market could see a surge in American investors in 2016.

The demand for rented office space is growing faster than anticipated.

In central London, the office vacancy rate (the sum of empty office space as a percentage of total stock) has reached a fourteen-year low and is still falling. In London's West End area, the vacancy rate has dropped to its lowest level since 1989. In central London submarkets, this culminated in rental increases across the board in 2015, and an inadequate development pipeline, in our opinion, would result in even further rent increases in 2016. "What back office functions can we move out of London to lower-cost locations?" is a question that more companies are asking. As a result, rent growth will be transmitted to regional office markets.

As a result of political trends, business risks will become more serious.

Any of the threats to the UK economy as a whole could worsen in 2016, potentially affecting commercial real estate. Any international investors will be wary of investing in the United Kingdom as the deadline for the 2017 Brexit referendum approaches. Some investors were temporarily put off by the Scottish referendum, while others saw it as an opportunity to bid on properties with less competition. The first camp had a larger number of people than the second. If polls suggest that the referendum would be a close call, commercial property demand will be affected. A pound run is also possible if the government fails to reassure capital markets that it is doing enough to address the deficit.

The slow death of the office desk will continue.

Workplace 'agile' environments, such as sofa areas, team space, and even games rooms, were once the domain of trendy advertising agencies and tech start-ups. When acquiring new offices, UK businesses from all industries are increasingly using agile work areas in more conservative ways. In terms of connectivity, team spirit, and employee happiness, companies are realizing the benefits of getting away from the desk. Furthermore, by not assigning a desk to someone, an organization saves time and resources. Agile offices will continue to gain prominence in 2016.

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