UK Regional Office Repositioning strategy (UKRORS)
UK Regional Office Repositioning strategy
With the pandemic fundamentally changing the way people live, work, and play, occupier demand in the office sector has evolved to reflect the ubiquity of the hybrid work model. Occupiers today place a far greater emphasis on quality, sustainability, and attractive micro locations and will no longer accept mediocre space. Given that most existing stock was built in the pre-pandemic era, the provision of space that is suitable for modern occupiers is heavily undersupplied. JLL estimates that demand for environmentally friendly space exceeds supply by a factor of 3 to 1.
Investors can capitalise on this trend by taking advantage of recent price corrections to acquire heavily discounted secondary offices in the right locations that can be repositioned to best in class space. Through strategic acquisitions and refurbishment plans that cater to these shifts in occupier demand, the investment programme bridges the supply gap and captures both yield compression and rental growth to provide highly attractive risk-adjusted returns.
