Commercial property is changing following Covid. More firms are shifting to hybrid working, and inevitably, there has been a reduction in city centre footfall. Industrial and office markets have had to adjust to the need for socially distanced space. Many places are having to think again about the role in which commercial property plays in local economies and how this might change in 2022.

James Bailey, Managing Partner at Bruton Knowles, shares his thoughts.

“According to the Centre for Cities, weekday footfall levels in key locations across the Midlands remain down on pre-pandemic levels. This reflects the ongoing reluctance of employees to return fully to workplaces, rather than the requirement by firms to reduce staffing densities to stop Covid spreading.

“A quick walk around Nottingham or Birmingham nowadays leaves you in no doubt that many of the once bustling commercial offices and industrial spaces have lost the buzz of human activity. That’s hardly surprising, as more firms embrace hybrid working practices. But for central business districts to prosper once again, these empty places need a renewed purpose.

“And although the UK housing shortage remains chronic, it would not be right to turn every unused office block into student accommodation or high-rise living. Houses need to be in close proximity to economic hubs, they should not replace them in their entirety.

“Communities are changing, and working practices are adjusting, but there is still an appetite for employees to engage - for at least part of the working week - in person, rather than via screens.

“So, before businesses start to move away from these economic centres to the suburbs, where commercial properties are cheaper to rent or buy, local authorities need to provide an added impetus to encourage people back.

“It is still too early to write city centres off, but action is needed sooner rather than later to incentivise employees and kickstart business performance to ensure cities can revive and thrive.”