Out-of-Town Retail remains a strong performing sector

Retail warehousing remained a strong performing sector throughout 2025, according to SHW’s Q1 2026 Retail Focus. As the standout performer within the retail sector, with low vacancy rates, supply side constraints and occupier demand led to sustained rental growth in 2025.

The investment market continued to be buoyant in 2025 with over ?2 billion transacted. Although lower than 2024, investment volumes are in-line with the 10-year average, with returns on retail warehousing averaging 9.8% over the last 12 months. Investment activity focussed on good secondary stock, which can offer a more attractive return, with investors such as Redevco and Realty amongst those looking to capitalise on these opportunities.

Jeremy Good, Director of SHW, says: “The occupational sector also remains robust. Vacancy rates remain relatively low at approximately 5%, and those units that came to the market following the failures of both Homebase and Carpetright were acquired by a range of other operators including food retailers, DIY stores, discount retailers and gym operators. We have also seen an increase in strategic acquisition of freehold interests of solus stores by a number of retailers to secure vacant possession for their own occupation at lease expiry.”

The acquisition activity across the sector has come from a variety of different operators depending on location. Jeremy continues: “We have seen continued activity on “high street” biased schemes from operators including Next, Superdrug and M&S Food Hall, whilst the discount retailers, in particular Home Bargains and B&M continue to expand their portfolio.”

Although Hobbycraft have announced the closure of a small number of stores reflecting difficult trading in some locations, the supply of units remains restricted. The gym operators continue to seek new space and are increasingly a viable alternative to retailers in a number of locations bringing a different range of consumers to these schemes.

Food retailers have generally reported positive figures for the Christmas trading period with Lidl and Aldi both showing a strong increase in sales. Lidl are now the fastest-growing bricks-and-mortar supermarket in the UK. Other food retailers like Sainsbury’s, M&S, Tesco, Morrisons and Waitrose all saw sales growth, whilst Asda have indicated a disappointing trading period. In a continuing trend, online grocery shopping grew by 9.9% over Christmas with Ocado, in particular, being the beneficiary.

The food and beverage/QSR market has continued its expansion with the focus on the drive-thru sector becoming increasingly competitive for strategic locations. The failure of Pizza Hut has released a range of new opportunities, but many were quickly acquired by other restaurant formats. The fried chicken operators continue to be active, with Popeyes opening its 100th UK store in November and US fried chicken chain Raising Cane’s announcing plans to open drive-thru restaurants in the UK. Coffee operators are still pursuing acquisitions and continue to be large stakeholders in the market. Their preference for smaller units than the food operators can be beneficial on established retail parks where space is already limited and competition is high.

Jeremy concludes: “The retail warehouse sector is expected to remain resilient through 2026, underpinned by strong occupier demand and limited new development. Rental growth should continue, particularly in the drive-thru and discount retail sectors where competition for space is intense. Investor appetite for well-located secondary assets is expected to remain robust, while yields may see downwards pressure if interest rates fall. Overall, the sector offers steady returns and continued appeal for both occupiers and investors.”

Flex Appeal: Why landlords are embracing coworking

Over the last five years, the workplace landscape has shifted. Once a niche offering, coworking has accelerated in popularity thanks to its flexibility, shorter-term contracts, differences in workspace design, and sense of community over the rigidity of traditional office leasing. It’s now here to stay, with JLL forecasting that 30% of UK office space will be flexible by 2030.  Flexible workspace technology specialist technologywithin explores how landlords are embracing the coworking space model in their new Breaking into Flex report coworking model.

Survival instincts

When corporations changed employee contracts, favouring hybrid working practices to attract and retain talent in a competitive labour market, they also moved away from occupying big office spaces. Instead of letting their offices sit empty, landlords have embraced flex, accounting for almost a third of companies in Q2 2024.

Viewed as a lifeline for landlords facing lower building occupancies, coworking can fill occupancy voids in larger spaces before a longer-term tenant moves in, giving breathing space to find a right-fit tenant rather than impulsively accepting a lower deal. As it involves leasing desks, spaces, and amenities in an open-plan workspace to different businesses or individuals, coworking is a viable option for buildings that don’t suit a traditional office layout.

For instance, turning 11% of GPE’s office portfolio into flex space didn’t require many drastic changes, as 75% of its floors were sub-10,000 sq ft. Within a month, GPE successfully leased out its flex space, securing an average lease length of three years, far quicker than experienced in traditional leasing. GPE now plans to expand its flex space portfolio, appraising an additional 152,200 sq ft of office space.

Meeting needs for today’s workers

While landlords favourably view the coworking model, it also has massive benefits for tenants. Hybrid working increases the demand for regional flex space in the UK, after many workers moved away from the capital to save on living costs during the pandemic. Today’s workers welcome the autonomy over deciding how, when, and where they work.

Manchester is leading the trend with its city centre reaching a 78% occupancy rate in Q1 2024, while the outskirts reached 75%. Likewise, at the end of Q3 2024, six regional markets acquired 252,000 sq ft (a 150% increase compared to Q3 2023).

Local coworking spaces are viewed as a perfect option to bridge the gap between the isolating experience of working from home as well as the costly and time-consuming commute. The core benefit of coworking lies in the essence of ‘co’: community, collaboration, and connection. Instead of one company occupying a large office space, coworking brings a vibrant mix of businesses and people together – a huge attractor.

Supporting start-up growth journeys

Coworking has long been synonymous with startups. More recently, landlords have identified opportunities to evolve the coworking model to support fledgling businesses during their growth journeys. For example, British fintech company Revolut first launched out of L39, a technology incubator hub and coworking accelerator for the capital’s most exciting startups owned by the Canary Wharf Group, in 2015. It then took a larger space in Westferry before expanding its office footprint by 40% in May 2025, signing a ten-year lease in May 2025 at the YY building – a 113,000 sq ft headquarters in the heart of the district.

Similarly, flexible workspace plays a key role in Legal & General’s real estate strategy. In larger buildings, flex is typically introduced not as a standalone product but as a value-added amenity. A portion of the building is then taken up by either L&G’s own coworking joint venture – Foundry UK – or operators like Runway East and Work.Life, working in partnership with L&G, offering customers the ability to scale up or down without leaving the asset.

Andrew Mercer, Office Sector Lead at L&G, explains: “The ideal model is a building that grows with its tenants. A company might start in a coworking or managed space, move into a fitted unit as it scales, and eventually take Cat A space they can undertake a bespoke fit-out themselves. That journey drives loyalty and lets our investors benefit from greater retention and monetisation in multiple ways across a customer’s lifecycle.”

Combining short and long-term leases, this hybrid approach to service-based space creates a diverse income stream, blending predictable returns with agile, operational income. That mix not only increases the asset’s capital value but also broadens its appeal to a wider pool of investors.

British Land launched its flex space brand, Storey, in 2017, after identifying a gap in the market between the coworking model and traditional leases. Becky Gardiner, Head of Storey, explains:

“From the outset, 7 years ago, we made a strategic decision to develop and manage Storey in-house rather than partner with a third-party operator. We already had the core capabilities—leasing, operations, design, customer engagement—so we asked ourselves: why share the profits? One of the biggest advantages is having a direct relationship with our occupiers. When an operator sits between us, we lose visibility. With Storey, we own that conversation. If a customer wants to grow, we can support them across our broader portfolio—whether that’s in Storey, Work Ready or traditional space.”

The owner-operator advantage

Diversifying a property portfolio with coworking protects it against future economic shocks, as landlords can monetise through multiple revenue streams. The Instant Group found that flex operations could generate generous returns of up to 30% compared to net effective rent. This is significant compared to the losses sustained from vacant spaces within a portfolio.

In some cases, asset managers have created their own in-house flex brands to leverage existing in-house expertise, an example being CEG's in-house brand, Let Ready, as it felt that a partnership wouldn’t align with its long-term asset strategy, nor give them the control they were looking for. Utilising its experience working with operators, CEG iterated the product design, pricing assets more responsively, preserving the local character of each building. With a portfolio spanning the UK, CEG found occupiers were more drawn to location-specific identities than a homogenous national brand, something a standardised third-party model couldn’t offer.

In large buildings, Let Ready also functions as a feeder, capturing early-stage occupiers and helping to scale within the same property, supporting tenant retention. This model also appeals to established organisations seeking short-term or project-based space. Corporate organisations have used Let Ready for temporary needs, later transitioning into longer-term conventional leases within the same building.

Similarly, GPE’s full control over assets ensures consistency and quality across its portfolio. Nicola Jones, Customer Experience General Manager, adds: “Unlike providers that lease space desk by desk, we manage everything, from the building environment to the service. This control allows us to integrate flex smoothly into our wider portfolio. It also removes any ambiguity for our customers - there’s no passing the buck or delays in action. We’re the single point of accountability, which gives our customers greater confidence and peace of mind. This also means we can deliver a more cohesive experience and consistently high standards across the entire building”.

Technology needs

Whether coworking exists as a stand-alone product or within a property portfolio, integrating technology tools not only streamline processes but also help operators generate more revenue through different income streams. For instance:

• Monetising amenities: Coworking monetises across multiple products, from hot desks (that enable more customers than desks), bookable meeting rooms, virtual offices, wellness classes and facilities, and even food and beverage add-ons. A coworking tech stack can aid revenue generation and customer experience.

• A dynamic pricing tool: By gathering data on space usage and customer behaviours, a built-in dynamic pricing tool can help increase costs on amenities at peak times, boosting profit.

• Upgrades to WiFi and connectivity: Investing in premium WiFi and connectivity increases costs, such as charging a premium on bandwidth upgrades to access uninterrupted high-speed connectivity.

Having a strong internal system at Landsec helps to deliver a frictionless customer experience across all its product, including its branded coworking offering – MYO. Natasha Morris, Director of Flex Offices and Head of MYO, explains:

“The goal is a frictionless experience for the customer and technology plays a huge part in that. Whether that is transitioning through the spaces, or visiting other sites, using the plug and play meeting room and events spaces or communicating with the individual customers in the MYO…We don’t want technology to remove our interactions with our customers, we want technology to unlock and enhance them.”

Some landlords build their own workspace management software, but they can face complexities when tools aren’t centralised on one platform. Partnering or outsourcing their technology needs to a trusted consultancy ensures that all the technology elements are taken care of, ensuring the smooth running of the space with wrap-around support provided.

Coworking aligns with occupiers’ changing expectations of the workplace – valuing inspiring, flexible, and community-focussed spaces. By embracing coworking, landlords meet occupier needs while protecting their portfolios against future economic shocks, setting a new standard for the future of the workplace.

Closures of household name retailers presents strategic opportunities for occupiers to expand and landlords to improve their property assets

By Jeremy Good, Director, SHW

Following the Government’s budget announcements in late-2024 and concerns over the impact of the new administration in the United States, retailers entered 2025 cautiously.

The impact of the tariffs imposed on trade by the US administration and the increases in April to the National Minimum Wage and National Insurance contributions led to a number of retailers carefully considering their strategy in the early part of 2025.

Despite the cautious attitude to the trading conditions, many retailers have continued with their expansion plans in the early part of the year.  The recent closure of Homebase and Carpetright in 2024 and more recently Poundland have presented a range of strategic opportunities for occupiers to expand and for landlords to improve their property assets.  Although concerned about the potential impact of these recently imposed inflationary pressures in 2025, Currys have reported a 37% increase in their full year profits due to strong UK sales and services. Likewise, M&S have announced a commitment to a £300 million programme to refurbish and upgrade their store portfolio.  These examples provide a clear indication that retailers are looking to resist the economic headwinds and are adapting their strategies to reflect the developing macroeconomic trends.

Although vacancy rates across the retail warehouse market have edged up slightly in early 2025 to around 5% due to the collapse of a number of retailers, a significant proportion of the vacant stock has been available for over three years and is now considered to be obsolete – this will be repurposed over time.  The true vacancy rate in the sector is likely to be around 2.5% once this space has been discounted. 

Despite the slight increase in the overall vacancy rate, this remains lower than the shopping centre/high street retail sectors.  As a result of this tight supply, especially in good retail locations and continued retailer demand, retail warehousing continues to attract strong investor interest as it offers longer leases, more resilient tenants’ and scarcity of product despite the challenging economic backdrop.

The failure of the national multiples mentioned has afforded landlords the opportunity to diversify the tenant mix in their retail parks to cater to shifting consumer demands. There is noticeably less emphasis on traditional bulky goods retail and a continued shift to more discount focussed retailers and grocers. Value-led retailers now occupy over 20% of retail warehouse floor space, a significant increase from the 8% seen a decade ago.

Although consumers have adopted a more positive outlook on their personal finances for the year ahead due to continued wage growth and lower inflation rates, retailers’ rising operational costs are expected to be passed on to the consumer which will reduce this optimism. Discount retailers remain best placed to profit from this current economic scenario and will continue to be a substantial element of the out-of-town retail sector.

The F&B market has remained strong in 2025, with many operators continuing aggressive expansion strategies despite the possible impact of increasing staffing costs. In the early part of the year, the coffee operators led by Costa and Starbucks were the most acquisitive operators across the retail park sector.  Others including Black Sheep, together with sandwich/bakery operators such as Greggs and Subway, continue to drive the sector.  In the restaurant arena, Burger King and Popeyes continue to be active whilst McDonalds are actively seeking opportunities in those key areas where they are under-represented.  Recent entrants such as Wendy’s and Taco Bell have continued to help drive demand and rents, although the increased costs of building new units has begun to affect viability of new build developments.

Demand for both drive-to and drive-thru units was high in 2024, driving rental growth across the UK, and this upward trend has carried into 2025, with new lettings often achieving new peak rents in their respective markets.  The competition for opportunities is likely to be exacerbated by changes in planning policy which are expected to limit development opportunities for hot food takeaways (e.g. Greggs and Popeyes), due to amendments to the National Planning Policy Framework (NPPF) restricting new schemes near schools. However, operators like Starbucks and Costa are less likely to be classified as “hot food outlets” by local planning authorities which may give a strategic advantage in this restricted market.

Investment

Investment volumes in Q1 2025 exceeded £880 million - an increase on the five-year quarterly average of around £750 million - although this is notably lower than the £1.8 billion recorded in the last quarter of 2024. Several major deals have completed in 2025 so far, including ICG Real Estate’s acquisition of three retail parks from M7 for £136.5 million in June and Realty Income’s £157 million purchase of County Oak Retail Park (Crawley) and Solihull Retail Park (Solihull) from Tritax Group/Delancey in May.

2025 began with cautious optimism and the majority of retailers have since demonstrated their ability to adapt to changing economic conditions. The continuation of expansion plans and the above average investment volumes signify a general belief in the out-of-town retail market’s strength. This has been particularly aided by improving consumer sentiment and persisting longer-term dis-inflationary trends reflected by the Bank of England holding interest rates steady at 4.25% in June.

From the current position, it appears that out-of-town retail sector will continue to appeal to both investors and occupiers alike throughout 2025 with continuing signs of rental growth in high profile locations with restricted supply.

Legal implications of the Government Plan to Ban Upward-Only Rent Reviews

SHW’s Lease Advisory and Valuation experts examine the legal implications of the proposal, its sectoral impact (office, retail and industrial), and the likely consequences for landlords, tenants and investors. We also explore how lease structures, valuations and investor risk appetites may adjust – and outline how market participants might respond.

The UK Government’s new English Devolution and Community Empowerment Bill (introduced July 10, 2025) proposes a ban on upward-only rent review (UORR) clauses in new commercial leases.

Under the draft law, any future open-market, index-linked or turnover rent review must allow rents to fall as well as rise. Existing leases would be unaffected, but all new business tenancies (including lease renewals under the 1954 Act) would fall under the ban. The change – intended to help struggling retailers and small businesses – has taken the market by surprise, prompting a wide range of reactions from surveyors, investors and tenants.

Key Provisions of the Proposal

Scope – New Leases Only:

The ban is to apply only to commercial leases granted after the Act comes into force, including any statutory or agreed renewals. Existing leases remain subject to current rules.

Business Tenancies:

All commercial property sectors are caught. In effect, office, retail, industrial and other business leases in England and Wales will be affected.

Rent Review Mechanics:

Only rent review clauses where the new rent is undetermined at lease inception are banned. Thus open-market, index-linked or turnover-based reviews must allow rents to drop if market levels fall.

Anti‑Avoidance Safeguards:

The Bill includes robust anti-avoidance provisions. Any clause seeking to sidestep the ban will be void. Landlords cannot delay or refuse a review to avoid a downward outcome.

Sector Impacts

Office Sector:

The traditional FRI lease model is challenged. Landlords may respond by setting higher initial fixed rents or including more landlord break rights. Developers and landlords may adjust incentives and there is likely to be more frequent use of lease re-gears and renegotiations.

Retail Sector:

The policy aims to help high streets, but many retail leases already lack reviews. 90% of new retail leases are 5 years or less. Smaller retailers may benefit, but landlords may counter with higher base rents, fixed increases, or turnover structures.

Industrial Sector:

Industrial leases, often for longer terms than alternative assets, face new volatility. Landlords may use fixed steps or CPI-linked clauses. This could affect yields and slow investment in some submarkets. Some commentators have questioned why sectors such as logistics and Grade A offices have been targeted alongside high street shops.

Implications for Stakeholders

Landlords:

Lose income certainty. Many will revise lease structures and underwriting. Yields may rise and capital values may soften.

Tenants:

Gain flexibility. This could improve affordability, but landlords may increase base rents or shift to CPI/fixed increases.

Investors:

Face new rental risk. Property values may adjust and institutional demand could shift in favour of non-UK assets.

Lease Structures and Market Responses

Higher headline rents:

Landlords may set higher initial rents to offset the loss of upward-only certainty.

Stepped or fixed uplifts:

These may replace open-market clauses as they fall outside the ban.

Index-linked reviews:

Since general inflation is rarely negative, indexation offers revenue growth with limited risk of reversal. CPI uplifts offer predictability and may rise in popularity. Under the Bill, landlords could still impose caps on inflation based reviews but could not include collars.

Shorter leases and breaks:

More frequent renegotiations and flexibility are likely.

Stronger tenant triggers: Tenants must ensure their review rights are enforceable and clearly drafted.

Valuation and Investment Outlook

Rising yields:

Rental volatility increases risk, pushing up yields and reducing asset prices.

Valuation models:

Must now incorporate downside scenarios and adjust discount rates.

Lender covenants:

Funding structures may change as debt-service coverage is reassessed.

Investment sentiment:

May dampen, especially for long-income funds or overseas investors.

Advice & Next Steps (SHW Perspective)

Overall SHW’s Valuation team anticipates moderately higher yields on new leases and a cautious stance from investors until the dust settles.

It is important to audit a lease pipeline and complete leases ahead of the ban where possible.

Portfolios should be reviewed to stress test them where all rents are rebased to the market rental review. Model downside rent scenarios to understand exposure.

Going forward it may be necessary to renegotiate deal terms to consider either fixed rents or alternative review clauses such as stepped or CPI reviews instead of open-market.

Looking Ahead

If enacted, this would be the most significant UK leasing reforms in years. While intended to help tenants, it could disrupt investment and valuation. SHW will monitor developments closely and continue advising clients on how to navigate this evolving landscape.

SHW’s Lease Advisory and Valuation teams are preparing guidance notes and holding roundtables with clients to discuss strategy to ensure their interests are protected as and when the Bill becomes law.

Asset Management is the word on everyone’s lips, but what does it really mean to an investor?

By Brook Stotesbury, Head of Commercial Asset Management and Investment at Martin’s Properties

I hear the phrase asset management at least 10 times a day in the real estate market – mostly linked to ‘value add opportunities’ as investors strive for transactions that will pay them back in terms of a compressed yield in 3-5 years.

To different investors, however, asset management means different things: a change of covenant, some light capex, minor refurb or extension works, decarbonisation to name a few. Some investors will appoint a contractor to do the works, an adviser to tell them what to do and project manage it or negotiate on their behalf. Most will pay third parties in some format.

The real opportunity for asset management is being able to see the opportunities that others can’t before the deal has even gone through due diligence. In this market, that’s a stand-out point of difference.

Recognising the full potential of an asset is critical to making informed investment decisions. We have had hundreds of deal opportunities presented to us in the last two years and many of them have positive attributes. But crucially, we know what makes a deal special.

With an in-house project management team, development, management and commercial expertise, future gazing is not only possible, but essential, as is adaptability and agility and, when an opportunity is spotted, moving with speed is key.

In order to do this, it's important to have an asset-by-asset business plan, not just an overall AM strategy. Each individual acquisition will have a separate business plan with flexibility built in to adapt as the asset matures. It's also important to be flexible on hold periods and adjust business plans to optimise this, especially in such a changing market where often the only certainty is that we will experience some level of uncertainty along the way.

Whilst our focus has been on building the regional and development portfolios in recent years, we recently had the opportunity to acquire another asset for the Chelsea portfolio where we can add value to the vacant asset through a mixture of development, asset management and repositioning. This will deliver longer term value and secure income.

Of course it helps to have cash funding available. Debt is available but for the right opportunities only but it does looks like the UK commercial real estate lending market is beginning to recover after a rather challenging period.

In recent research by Bayes Business School, which gathered information from 80 banks, insurance lenders and debt funds, new loan volumes were up by 11% year on year by the end of 2024 with over £36bn lent and a real upsurge in the final quarter. No doubt lenders were buoyed by two interest rate cuts from the Bank of England and, with two subsequent cuts in February and May so far in 2025 these figures are certainly likely to improve. That said, the market has largely priced in two further cuts – most likely to be seen in August and November, finishing the year at 3.75%, but we may always be pleasantly surprised this month too. However, lending still requires solid relationships and track record as well as a robust proof of concept to underpin the transaction’s attributes. In this market, those opportunities are few and far between and having cash, private ownership and agile leadership provides another competitive advantage to move quickly for opportunities without the need to line up all relevant parties and go through various approval stages.

Asset management can take on various forms but having an in-house team who can decide what strategy is possible to adopt and seeing the hidden opportunity before even acquiring an asset, is the real secret weapon.

Debunking ESG Myths

By Samuel Warren, technologywithin

ESG frameworks are essential to long-term business success. For coworking brands, these efforts can go beyond simply reducing carbon footprints, creating inclusive communities, and ensuring ethical business practices. In fact, establishing solid ESG frameworks in coworking spaces can create sustainable, socially responsible, and financially resilient workspaces, communities, and local ecosystems. However, some common misconceptions surrounding ESG can deter businesses from embracing its principles – in this article, we’ve debunked some of those myths.

Myth #1: ESG is all about sustainability

With pressing net-zero targets influencing the commercial real estate sector, it’s no surprise that sustainability initiatives and climate change dominate public discourse. While environmental impact is an important component of the ESG framework, the social side shouldn’t be overlooked – in 2021, McKinsey found that companies with socially related shareholder proposals rose by 37% compared to 2020.

Social responsibility covers[1]  relationship management with employees, customers, and communities, across labour practices, workers’ rights, and DEI (diversity, equity, and inclusion) initiatives. As companies depend on people and communities, social impact matters as much as environmentally friendly practices.

In the coworking world, socially impact-driven initiatives could encompass the following:

●      Committing to more equitable access to opportunities for underrepresented communities by facilitating programmes, initiatives, and accelerators.

●      Partnering with local charities and volunteering the team’s time to help out.

●      Discounting event space hire for initiatives that bring social impact and value, such as local communities who run sessions for underrepresented groups.

●      Committing to an equitable recruitment process and hiring locally towards revitalising towns and neighbourhoods.

Myth #2: ESG efforts are too expensive

There is a common misconception that improving sustainability credentials in coworking spaces requires costly retrofits, such as installing expensive solar panels and heating, ventilation, and air-conditioning (HVAC) systems.

While these upgrades can help reduce carbon emissions, there are other impactful ESG initiatives to start[2]  with that don’t come with a hefty price tag:

●      Replace lighting solutions in your workspace with less energy-intensive options, such as LEDs. 

●      Apply a circularity lens to your furniture supply chain – procure second-hand furniture or purchase vintage pieces, and donate used furniture and office equipment to charity partners or schools.

●      Replace harmful cleaning products with more natural solutions, keeping community well-being and health in mind.

●      Introduce plants into your coworking space to improve air quality.

●      Partner with a neighbourhood gym or yoga studio – introduce fitness and wellbeing programmes to your community and event schedule.

●      Reuse existing IT hardware where possible – at technologywithin, we support our clients’ environmental goals by offering device-agnostic services, enabling new clients to retain and reuse their existing network and WiFi hardware, significantly reducing unnecessary waste and their carbon footprint.

While smaller, incremental changes to your workspace may require a slight investment, you’ll be surprised how some solutions can work to reduce your outgoings. For instance, replacing energy-intensive lighting with LEDs can reduce your lighting costs by up to 80%. Equally, focussing on social-impact initiatives for your community will attract more customers to join your workspace.

Myth #3: ESG is just for big companies

Although more than 90% of S&P 500 companies report on ESG efforts, this framework isn’t exclusive to large corporations. Whether you operate a neighbourhood coworking space or a growing flexible workspace brand, businesses of all sizes can make a meaningful difference.

In 2022, flexible workspaces created 158% fewer emissions per occupier than leased or traditional offices. Coworking spaces are typically designed with communal kitchen facilities, shared appliances, and more efficient space utilisation which, by its nature, values community and collaboration. 

Beyond environmental benefits, smaller businesses can have a strong social impact at a grassroots level. For example, Oru Space in Dulwich sponsors a foodbank, hosting community cook-up events. Despite only managing two workspaces in South London, Oru creates a huge community impact, leading to greater profit.

Myth #4: ESG is only for my ESG Manager to deal with

Since the ESG framework was coined in 2005, many companies have taken action by creating a dedicated role to oversee their ESG efforts. A report published by KPMG explains that the role of an ESG manager can help centralise accountability, however, they must work closely with C-suite executives and business heads across different departments to carry out the company’s ESG agenda and gather input.  After all, real change is a collective effort.

Exemplifying how ESG isn’t just a one-person job, flexible workspace operator FORA established a sustainability committee to steer the long-term direction of its ESG strategy. The entire organisation contributes to impact – initiatives include volunteering to coach pupils from disadvantaged backgrounds and running wellbeing events with a dedicated fitness partner. However, ultimate responsibility for ESG goals lies with the CEO and senior management team, as stated in its latest annual impact report, published in November 2024.

Myth #5: ESG requires complex technology

With ESG being a collective effort, it’s not just your team that can make a difference – technology plays a fundamental role too, gathering data to report and measure ESG impact. But with so many advanced tech solutions available for the coworking industry, the misconception here is that ESG reporting and management require complex technology. The truth is it doesn’t.

Coworking technology exists to make your operations run seamlessly. Implementing tools, such as our twiindata Nomad tool, contributes to the following ESG efforts[3] :

●      Track space usage to understand customer behaviour patterns. Switch off energy-intensive resources, like lighting and air conditioning, during quiet times, saving costs on utility bills and reducing impact on emissions.

●      Collect data on movement to optimise staffing, cleaning services, and maintenance schedules at your locations during peak hours, reducing overheads.

●      This data can also be used to curate your event programme for members, host events on days when most people are in the office, and contribute to social initiatives.

According to McKinsey, companies that carefully consider their processes to measure ESG efforts are better positioned to adapt and change. This all comes down to partnering with the right software provider to support your business goals, whether around ESG or other KPIs.

Ultimately, integrating ESG into your coworking operations places sustainability, social impact, and governance at the heart of your future-proofed workspace.

Sustainable spaces: ESG strategies for coworking success

We recently brought together leading voices from across the European coworking sector for a dynamic conversation on ESG—covering strategies, challenges, and practical advice. Now available on-demand, the session features insights and real-world case studies from experts at Clockwise, New Work, Design Offices, Avila Spaces, and Vertical Coworking. Plus, don’t miss the exclusive unveiling of results from the first-ever ESG in Flex Report—packed with takeaways to help you embed sustainability and resilience into your workspace strategy.

Why IT Security in Flexspaces Can’t Be an Afterthought

From technologywithin

IT security can feel like a constant headache. From Face ID and 2FA authentication to deciphering blurry traffic light photos to prove you’re human, the roadblocks never end. And who hasn’t groaned at the dreaded “change your expired password” reminder? As irritating as these measures are, they play a critical role in keeping us safe online.  Security may be annoying, but it is essential.

At technologywithin we know this challenge better than most. As creators of tech products, we are tasked with the delicate balancing act of delivering products that are both secure and user-friendly – two objectives that don’t always align.

In the flexible workspace industry the stakes are even higher. Our solutions don’t just serve building owners and operators, they directly impact their customers - end users who expect reliable and secure connectivity. As more corporate clients become part of the flex space ecosystem, questions around network and data security are becoming increasingly important.  These customers want assurance that their networks will be properly secured, segregated from others in the building and compliant with their own rigorous security policies and standards.

When security fails, trust crumbles. End users must be able to trust their operator, who, in turn, relies on their tech provider for security and reliability. A failure at any point in this chain can have severe consequences.

With this in mind, we’ve become concerned with the growing presence of flexspace tech products on the market that seem to prioritise convenience at the expense of security, leading to inadequate security standards. In this article we aim to help operators better understand the risks involved and make more informed choices when choosing a tech provider.

Building private, secure networks in Flexspaces

A key component of any flexspace tech system is the ability to move end users onto their own private network. This network is “ring-fenced” exclusively for the end user’s company, ensuring that their data and activity is completely isolated from other occupants in the building. While a second network for guests and visitors may exist, our focus here is on the secure networks for building occupiers.

A common feature of nearly all flexspace tech stacks is VLAN (virtual local area network) technology. VLANs have long been a trusted IT solution designed to separate networks running on common equipment.  Their reliability and security make them an ideal choice for flexspaces.

The key differentiator lies in how the tech product associates a particular end user device to the correct VLAN.  It is crucial that this is handled properly and securely, because if a device mistakenly ends up on the wrong VLAN, it could give unauthorised access to another end user’s network, posing a major security risk.

Why MAC Address Authentication falls short

Every IT device that connects to a network has a unique identifier known as a MAC address for each wired and wireless interface, similar to a fingerprint or a phone number.  Because each MAC address is unique, it may seem like a logical approach to use it to pre-register the device to a specific user in the building. 

Once registered, whenever the MAC address of the device appears on the network, the device is automatically assigned to the VLAN of that user’s company.  Seems simple and secure, right?

But here’s the problem: MAC addresses are alarmingly easy to spoof.

It is incredibly simple to change a device’s MAC addresses to match that of any other device.  No specialist equipment is necessary – this can be done in seconds on a Windows laptop, natively within Windows and without any additional software.

So, if you were to change your laptop’s MAC address to match that of another user’s device in the building and connect to the network,  you would be placed on that company’s private network. This would give instant access to the company’s shared network resources. This vulnerability puts entire networks – and the sensitive data within them – at risk.

To make things worse, MAC addresses are very easy to find.  Because they are essential for network communications, they are transmitted over a network in  unencrypted form. A malicious actor could a snapshot of the network traffic, an action called sniffing, and identify MAC addresses within seconds.

‘Sniffing’ can be done wirelessly, and again doesn’t require any specialist equipment – just a regular laptop and freely available security software will suffice.  Even more worrying, if there is a wireless signal outside the building, hackers wouldn’t even need physical access to the building to carry out this simple hack. At a recent conference, a quick scan on a free smartphone app revealed the MAC address of every device connected to the building’s wireless network.

The usability drawback of MAC authentication

MAC addresses have long been used by wifi providers to track users online, but with increasing public pressure for more privacy, both IOS and Android have introduced a feature called “MAC address randomisation”.  This feature, by default, hides a phone’s real MAC address when it connects to a network and sends a different one in its place, giving users a greater degree of privacy online.

This of course presents a challenge for  MAC address VLAN authentication unless users disable this privacy feature.  This undermines the simplicity of the method, as it requires users to adjust their device settings, creating a less seamless experience.

The Gold Standard for wireless VLAN authentication

At technologywithin we don’t cut corners. That’s why we don’t rely on MAC address as a primary authentication method.  Doing so would jeopardise the integrity of our system and erode the trust our customers place in us.

Instead we use Enterprise Encryption, which encrypts each user’s connection with a unique encryption key.  This is the gold standard for wireless encryption in Flex and ensures that wireless “sniffing” cannot decrypt other end user’s data.  VLAN allocation is handled securely using a radius server linked to a username and password.  At no point is the device’s MAC address involved in the process.

A trade-off worth taking

As mentioned earlier, security often comes with a trade-off. In the case of WPA2 Enterprise, depending on the device used, users may need to accept a certificate the first time they connect to the network. While this adds a couple of extra clicks, it’s a one-time setup.

Once set-up, users can enjoy seamless, secure access every time they enter the building. For customers using our Nomad roaming feature, this convenience extends across multiple locations. We feel this minor inconvenience is a trade-off worth taking.

In Summary

Choosing a tech provider for your flexspace is a long-term commitment, so it’s crucial to do your due diligence.

A full IT security audit should be a part of your evaluation process.  The example discussed here is just one of many security points to look out for, but it is an important one.  If your provider is using MAC address authentication, don’t hesitate to ask for more details and consider involving a third-party consultant to help you make your choices. 

Overlooking  security could come back to haunt you - whether it’s losing a major prospect who asks tough technical questions or facing the fallout of a significant security breach.

Security isn’t optional. It’s an essential component of any successful flexspace. Don’t take it for granted. 

WATER NEUTRALITY: A CHALLENGE OR AN OPPORTUNITY FOR DEVELOPERS?

In a recent roundtable discussion, Des Sudworth, of Kreston Reeves, joined Tarniah Thompson, Head of Facilities Management & Sustainability at SHW, and Peter Rainier from DMH Stallard Planning to address the growing impact of water neutrality on development.

The focus of the conversation was on whether water neutrality poses an obstacle or presents an opportunity for developers, landowners, asset managers, and local authorities.

While nutrient neutrality has already hindered residential development across many parts of the UK, the government’s drive to reduce water usage and achieve water neutrality remains relatively unnoticed. This initiative will significantly influence development, as seen in Sussex, where the experiences provide a glimpse of what others might face.

Despite the UK’s frequent rain, much of the country experiences water stress, raising concerns about the future availability of water. The Environment Agency has projected that by 2050, an additional 3,435 million litres of water will be required daily to meet public consumption needs.

Natural England’s Position Statement, issued in September 2021, mandates that all developments within the Sussex North Water Supply Zone (SNWSZ) achieve water neutrality. This affects areas such as Horsham, Crawley, parts of Chichester, and the South Downs National Park. Local authorities in these regions have appointed water neutrality officers to enforce this policy through the planning process.

Impact on Development

Water neutrality presents both challenges and opportunities for residential developers. High water usage sites like restaurants, hotels, and pubs offer potential for redevelopment. For instance, converting a pub into three or four homes with water-saving measures can achieve water neutrality. However, these small-scale projects do little to address the broader housing needs.

Larger developments face more significant hurdles. Developers must first assess the water usage of their proposed sites and implement substantial water-saving measures to reduce household water use from the typical 110 litres per person per day to just 70 or 80 litres. Even this may not suffice to meet the stringent requirements of water neutrality.

Landowners with independent water sources, such as underground aquifers, find themselves in a valuable position, with developers approaching them for water extraction and development opportunities.

Collaboration and Innovation

To navigate these challenges, developers are exploring collaborations with high water usage property asset owners, including social housing schemes, schools, healthcare providers, and industrial managers. By funding water-saving measures, developers can generate 'water credits' to offset their projects. This approach, however, requires a 30-year commitment to maintaining these water-saving measures.

Asset owners remain cautious about the long-term implications of these commitments. Questions about the impact on future expansions or the sale value of properties with water restrictions linger. The water credit scheme initiated by local authorities in West Sussex is not expected to be operational until late 2024.

Currently, partnering with social housing providers has been the most straightforward route for developers. Implementing water-saving measures across social housing schemes in exchange for housing allocations allows developers to bypass the need for water credits.

Political Implications

Water neutrality is poised to become a significant political issue in housing delivery. It underscores the urgent need for additional reservoir capacity, although realising this within a functioning planning regime could take decades. The political landscape's volatility may delay the necessary tough decisions, leaving landowners, developers, local planning authorities, and homebuyers to bear the brunt of water usage challenges.

While water neutrality introduces a new set of challenges for developers, it also offers innovative opportunities for those willing to adapt and collaborate. As the UK grapples with its water usage and the impending impacts of climate change, the balance between development and sustainability will be crucial in shaping the future of housing.

Covid-19 & Construction: A Surveyor’s non-exhaustive thoughts

by Tim Grierson, Head of Dilapidations, Delva Patman Redler

With the view to helping us all and to save you time, I’ve gathered the following information to help us all make informed decisions on live sites and want to share my findings here:

We must do what is best to help the UK’s at risk people by social distancing and following government guidelines for ‘people’, and ‘employees, employers and businesses’. Email updates from government can be obtained here.

Further to this, if sensible, and you are able, please do consider volunteering for the NHS or your local council.

If you are a Client: your Surveyor, Architect & Legal Team will collectively be able to advise you on what your best, case specific course of action is; practically & contractually. Some consultancy tasks can be accelerated now and benefit from the situation.

At present the majority of builders’ merchants are now closed and therefore the only course of action may be to pause works until the Government releases the next statement on COVID-19, in relation to social distancing, as builders are presently struggling or unable to get construction materials.

If your site/trades do have the materials they require, when deciding whether to shut a site, a construction site professional should as a minimum be considering the following guidance:

Construction Industry Council – CIC response to COVID-19 outbreak

• Key: What sites should remain open?

Construction Leadership Council – News

• Mandatory: Site Operating Procedures during Covid-19

RICS – RICS Response to Covid-19 (Coronavirus)

• Key/Mandatory: How to deal with coronavirus under NEC and JCT contracts | 9 April 2020 05:00 PM – 06:15 PM

Chartered Association of Building Engineers – COVID-19 – 25/03/20

Federation of Master Builders – Responding to Coronavirus (Covid-19)

CLC – The Specialist Property Law Regulator – Coronavirus: Resources and Information

BuildUK – Coronavirus Impact on Construction

Building – Coronavirus and Construction

I hope this information is helpful to you. If you have any queries, thoughts or tasks you need help with, please do not hesitate in contacting me or any other member of the Delva Patman Redler team.

Stay safe.

Property Lending in 2020

by Chris scott, Lending Director, Pluto Finance

As we come to the end of the first month of the new decade, in just a couple of days, Britain will no longer be a member of the European Union (EU).  While the threat of a no deal Brexit is still hovering, all be it at a distance, and no one can tell what 2021 Britain looks like, it does seem as though the Conservative majority has given the market a nudge in the right direction, with a flurry of properties being brought to market since the turn of the year.

Average asking prices have surged 2.3% since the election and mortgage approval rates in December were up 19.6% year on year. This is particularly encouraging considering house price growth ground to a 0.7% low in 2019, down from 3% in 2018. All of this points to a well-timed recovery heading into the traditionally busy spring market. It is therefore likely that we are in for an encouraging few months ahead, before another batch of uncertainty due to fall toward the end of the year. Should Boris and his team be able to share some early insights and provide some post Brexit certainty, the good times may well roll on.

Commercially, we have seen and expect to see more activity in the office, hotel and industrial sectors. With interest rates set to remain low, commercial and residential investments will remain attractive proposition for domestic and international investment. Save for retail, we expect to see increased activity in these sectors and the use of bridging finance is well placed to support it, particularly when it comes to acquisition or repositioning. Pluto offers bridging rates from 0.6% per month up to 70% Net LTV.

The development space is one we are particularly excited about coming into the year. All things considered, housing supply is still a major issue for the UK economy and one the government is well aware of. The rental demand/supply gap is also widening due to the impact of tax changes for portfolio landlords, leaving BTR and PRS operators an opportunity to thrive.  With proposed changes to the planning process and continued pressure on housing targets, there is undoubtedly still an opportunity for residential developers. However, due to land trading at a premium, cost of materials on the rise and a shortage of qualified labour, developers will have to ensure efficiency and deliverability is a key consideration. The construction industry in particular will also embark on a period of change. Enhancements in Proptech and the emergence of modern methods of construction (MMC), 3D printing and a data driven approach to delivery will start to revolutionise the space. We have a strong appetite to support experienced borrowers delivering schemes across England. Our products, priced from 3.95% above LIBOR, are market leading and we are currently funding the construction of over 2,000 homes.

Looking forward over 2020, it looks set to be an exciting and largely positive year. Whilst uncertainty will remain in part, what is certain is our appetite to lend across the development and bridging landscape. As a non-bank lender, our processes, decision making and customer service is a key differentiator in our space. This approach, coupled with a market leading product offering and ability to close complex transactions, will underpin the year ahead.

Increasing housing supply - Catch 22?

by Malcolm Frodsham, Real Estate Strategies 

Catch 22 , written by Joseph Heller and published in 1961, is often cited as one of the most significant novels of the twentieth century. The housing crisis is certainly one of the most significant problems today and my mind often drifts back to the novel when listening to politicians out-bidding each other with schemes to ‘solve’ the housing crisis. Housing policy epitomises the type of bureaucratic reasoning justifying actions in Catch 22 - the political imperative to avoid any housing policy that actually makes houses affordable!

The housing crisis is real, and solving it requires house prices to fall, either through massive new supply or a reduction in demand.   But there is a catch: politicians know that a fall in house prices will be unpopular with homeowners. Housing is the nation’s chosen store of wealth, so reducing housing costs equates to reducing the stock of wealth. So we have a Catch 22; action must be seen to be taken on the Housing Crisis, but on no account should this action result in lower house prices.

So politicians compete with each other on promises to build more ‘permanent dwellings’, but only ‘affordable’ ones, or in other words, homes that will not actually impact the prices of the rest of the housing stock.

Building any homes is of course tough and unpopular locally, so in order to have a policy to announce, the Government subsidises the buying of houses (Help to Buy). This has the benefit of actively supporting house prices and therefore perpetuating the crisis. This political wheeze would sit happily with any of the absurd notions in Heller’s classic novel.

An achievable solution to affordability, is to switch taxes away from income and instead tax housing wealth. The investment motive to own housing is reduced, encouraging occupiers of homes with more bedrooms than required to trade down to smaller houses (there is a an astonishing 1.8 rooms per person in Great Britain, which is a very peculiar housing shortage indeed).  This would boost housing supply and reduce prices.

Will this happen? Yes, under Labour’s ‘progressive property tax’. Will the electorate vote for such a tax, or is it Catch 22?

A Month's Worth of Rain in One Day?

Malcolm Frodsham, Real Estate Strategies

I’m not sure if it is my advancing years or having three teenage children, but some expressions cause me late night irritation. “A month’s worth of rain has fallen in one day” we are reverently told, but what is this statistic intended to imply? Has this amount of rain ever fallen in one day before or does this happen quite often?

Expressing rainfall, as with many other measures, with reference to an average is not necessarily helpful without further clarification. How often does the average monthly rainfall total fall in one day? What impact will this amount of rain have on the transport infrastructure?

Measuring portfolio risk is similarly subject to the tyranny of averages. The average vacancy period for a particular unit might be 6 months, but what is the likelihood of a longer vacancy period?

Are such events likely to be isolated or are similar units also likely to be affected? Understanding the vulnerability of portfolio income to such events is the key to risk management and measuring the empirical history is the key to estimating the risk. If you are interested in such a study please get in touch.

As with the weather, we may not be able to predict extreme events, but we can at least understand their likelihood and make the necessary preparations and contingencies.

NB: the portfolio affect is amply demonstrated by daily rainfall totals for the South east as a whole for which no single day’s rain has exceeded the monthly average since records began in 1931.

Does Twitter help SEO?

The answer is YES!

Research shows that up to 85% of users will click a company’s social media profile before clicking their website. From all the platforms we decided to focus, today, on Twitter. 

Let’s look at some of the statistics:

According to information available on the web, this channel boasts of 326M monthly active users; There are 500 million tweets sent each day and 6000 tweets every second.  The growing user commitment is a great opportunity for brands.

If numbers are anything to go by then, according to a Twitter survey, 54% of users reported that they had taken action after seeing a brand mentioned in Tweets (including visiting their website, searching for the brand, or retweeting content).

Let’s not forget the Google and Twitter partnership which makes many of the top tweets searchable. Neil Patel aptly points out that search engines use social signals from social media to rank your website. Likes, shares, and comments affect SEO in huge ways.

Here are a few ways you can start to take full advantage of the benefits of Twitter for SEO:

1. Have a dedicated strategy to increase your following

2. Add key words and key search phrases to your Twitter bio. Use these words periodically

3. Show appreciation for those who forward your Tweets. Use @mentions to reference people when they engage.

4. Retweet to help double your traffic

5. Redirect users to your website by inserting backlinks to your content

6. Engage with your audience

7. Include images, videos and Gifs in your posts. They help the tweets to stand out 

 At Flashbulb we have been using Twitter to drive results for our clients. Get in touch to know more.

People-centred workplaces are centre stage for war on talent

Attracting and retaining talent, as well as maintaining employee productivity is becoming a real concern for organisations, according to a survey carried out at the 12th Property Directors Forum, hosted by Avison Young.

Adopting more ‘flex space’ will be key in talent recruitment and retention, as will improving company’s employee feedback process and the inclusion of employees in decisions that influence how the workplace is run.

The survey, carried out by occupier property directors, identified a people-focused divide in workplaces, with 10% of respondents stating that their firm did not measure employee engagement at all and 57% only measuring employee engagement through a simple question in an annual HR survey. Only 32% of respondents were found to have a dedicated employee engagement tool. 29% of those surveyed have an employee advisor group and 14% are regularly asked to contribute ideas as part of a monthly review.

Jason Sibthorpe, Avison Young’s Principal and President, UK comments: “One of the striking takeaways from our latest Property Director’s Forum is the putting aside of technological advances that have been hot topics over the last couple of years. What employee satisfaction appears to boil down to is the simple things like employee engagement, offering clean facilities (nice loos!) and providing simple perks like tea and biscuits.

“In keeping with the employee engagement theme, the results of the survey suggest that employers need to invest in flexible and people-driven spaces to create more productive and appealing workplaces in order to retain talent,” Jason adds.

On attitudes towards the move to flexible working, the survey found:

• 57% agreed that flexible space is an appealing environment for employees, with 50% agreeing that flexible space makes attracting and retaining talent easier

• 39% agreed that flexible working improves employees’ mental well being

• 62% agreed that the use of flexible space in their real estate portfolio will increase in the next 5 years

Jason concludes: “With the majority of our respondents concerned about attracting and retaining talent, we need to go back to basics. As well as keeping abreast of the latest gadgets and timesaving methods, we shouldn’t forget the need for employees to feel appreciated. A nice workplace, flexibility and a bit of facetime goes a long way in boosting employee productivity.”

The next Property Directors Forum will be held at The Royal Society of Chemistry, Piccadilly, London on Thursday 27th June 2019.