LOS ANGELES—The office and industrial markets in the United Kingdom, and specifically London, are experiencing many of the same trends and drivers as the markets in the US. The office market is experiencing strong growth with a lack of supply that is pushing up rents and a growing demand from creative and tech industries. The industrial market is very robust, with a sub 2% vacancy rate in some areas and tech and e-commerce companies serving as a driver. Doesn’t that sound familiar?
At Lee & Associates’ annual Broker Summit in Las Vegas, we were able to sit down with Paul Pride and Mark Trowell from Gerald Eve, Lee Associates’ UK brokerage partners, for an exclusive video interview to find out more about the UK market. In the interview, Pride and Trowell delve into the drivers and trends in their office and industrial markets, reveling striking similarities between the UK and US markets, and also give us a look at where the markets are headed.
Of course, we wouldn’t let them leave without asking about Brexit and how the referendum vote to leave the European Union might impact the commercial real estate market. So far, they have yet to see a significant impact, largely because the negotiation process has not begun, and they don’t expect to see any significant impact in the short term. In the medium and longer term, however, Pride says that it will be harder to tell the potential fall out and will depend on what comes out of the negotiation process. Trowell added that there were some developers in the industrial sector that decided not to build speculatively as a result of the vote. Press play to hear more insights on the UK market from Pride and Trowell.