Holt Commercial Director, David Allen, has used his annual contribution to the Cambridge University Land Society magazine to assess current market conditions and also look at some of the issues facing the industry.

David has contributed to the publication over many years having attended the university between 1972 and 1976.

In his latest article, he urged readers to ‘follow the occupiers’ when it comes to looking at market trends.

He wrote “The popular sectors of build-to-rent, both multi-family housing and single-family housing with purpose-built student accommodation are the obvious occupier sectors whilst data centres, logistics and life sciences are also robust areas to invest in.

Retail has been often discussed as being in decline but I would still consider that retail warehousing has much to offer in terms of its asset management potential, whilst offices in my view, remain challenging across all but the prime market.”

Another key focus for the industry is achieving net zero and David outlined some of the challenges and opportunities it brings.

He wrote “Trying to achieve net zero carbon is a challenge everywhere. The West Midlands has a target of hitting net zero by 2041 but that will involve some very hard decisions as it is not only the new stock that we are discussing but the existing stock. That, combined with no consistency between EPC ratings, Fit Well, Passivhaus Classic, BREEAM, NABERS and Platinum wired scores make it incredibly confusing.

The level of upgrade needed for existing buildings is probably only now starting to come into focus. Retrofitting and a recognition of the circular economy, embedded carbon balanced against a building fit-for-purpose will be an ongoing debate. So, are tired offices now a value-add opportunity enabling them to be repurposed?

Generally, on commercial property, a property EPC will have to be an E or better by April 2025 which, in and of itself is not particularly challenging, but making properties C or better by 2027 will be substantially more difficult. Achieving a B by April 2030 is particularly difficult.”  


To read the article in full, go  to  https://www.culandsoc.com/about/culs-magazine/