Friday, November 8, 2024

2022 Business Predictions: Richard Heslop, Managing Director of DE Commercial

It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead. 

It has become something of a tradition, given that we’ve been doing this now for over 30 years.

Here we speak to Richard Heslop, Managing Director of DE Commercial, a boutique property consultancy in Ilkley.

The first half of 2022 will be dominated by Covid, supply chain issues and the increasing costs of construction. While Covid has been with us for 2 years now, the latter two came to the fore in the second half of 2021. What is certain going forward into 2022 is the uncertainty created by these issues.

Having said that the commercial property market remains resilient.

We expect to see the warehouse/industrial market continue to make the gains witnessed over the past 12 months which has seen development land deals exceed £1million per acre with freehold and leasehold values gaining more than 20%.

A cloud will remain over the office market which is now dominated by “work from home.” Going forward we expect more companies to develop their strategies of employees mixing home and office working. This will have a dampening effect on the growth potential for this market.

The investment market remains robust and the supply shortages will continue to hold back this sector at the smaller end. Property yields continue to outstrip other asset classes and private investors will be loathe to sell if there is no alternative home for their capital. Demand from institutional investors, particularly for warehousing/distribution buildings, will ensure yields harden further as they look to strike deals off plan or during the early stage of construction.

With regard to the retail market, the two overriding factors affecting demand will continue to be the high level of rates payable coupled with the inexorable rise of internet shopping. As work from home spills over into 2022, the internet will continue to win out.

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemichaving a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.








Latest news

Related news