By Legal Futures Associate SearchFlow
Anyone who hoped that the financial uncertainty experienced during the COVID-19 pandemic within the UK’s commercial property law sector would have abated by now will be sorely disappointed that this has not materialised…yet. According to Knight Frank, global commercial real estate investment was down by 54% year on year in 2023, driven by “structural shifts, concerns over the economic outlook, and geopolitical tensions”. Thankfully, the prospect of lower interest rates from the Bank of England and a more stable political environment in the UK is adding to considerable optimism within the commercial real estate sector.
Rather than waiting for the expected better conditions to arrive, we have spoken to some of the top commercial property law experts in the UK about how firms can overcome the persistent levels of financial uncertainty in the sector today. If you are short on time, however, what you need to know is that data analysis is going to be the main key to achieving this aim.
Clients need confidence to make decisions
To make long-term commercial property decisions and investments, clients need help making sense of what is happening and the insights available to them. Effective analysis of transactional data is now an essential tool in allowing customers to see trends, patterns, and trajectories for the future.
Key takeaway: Financial stability can be achieved by accessing more authoritative data and better analysis to inform confident decision-making.
Meet the changing needs of commercial property clients
Commercial property occupiers increasingly want high-quality, flexible office space with moveable walls and modular furniture. Data analysis plays a vital role here because used correctly, it will allow commercial property firms to quickly narrow down the optimal locations for attractive and suitable working spaces that will attract strong demand.
Key takeaway: Analyse in-house and external datasets to help clients decide where to develop high-quality flexible office space.
Getting ready for the future
The most successful commercial property and commercial property law firms are already preparing for the future, including smart cities and buildings. Buildings that bring together connected vehicles, data systems, integrated sensors, AI, and automation will enable portfolio owners and facilities managers to reduce costs and create environments that are in tune with the needs and demands of tenants.
Key takeaway: Data analysis is becoming more important for commercial property developers and investors.
What next?
Core to mitigating the ongoing levels of financial uncertainty in the commercial property sector is making the best possible decisions through data analysis and making this available to clients. For more expert insight for your law firm, please download our free guide – ‘Commercial Real Estate Insights 2024: Planning for a successful future: expert perspectives from legal professionals’.
