Landwood Group share the company’s latest commercial property insights:

KEY SECTOR REPORTS

Industrial and Logistics 

Global warehousing costs rose 3.6% over the past year, marking the third consecutive year of slowing growth as markets adjust to macroeconomic uncertainty and rising power, construction and rental costs. With construction and fit-out costs still remaining high, many occupiers feel best placed to stay put and hold out until the market recalibrates. 

Many SMEs we work with see lease re-gears as the best next step to secure favourable terms while the market settles. However, as occupiers reassess their options, balancing transport and labour access with increasing power needs and facilities, this is delaying leasing decisions. 

Shipping disruptions and tariffs are also pushing firms toward nearshore logistics hubs to reduce costs where possible. 

Land

Land continues to see positive demand, particularly for residential-led development opportunities. Local authorities, including Manchester City Council, are prioritising the release of brownfield sites to meet ambitious housing targets, which is helping drive momentum across Greater Manchester and beyond. Demand from registered housing providers remains high, particularly in suburban and edge-of-centre locations. 

We are currently dealing with the sale of several plots of land primarily in the North West including car parks and plots with development potential. These niche opportunities continue to attract interest, particularly where there’s scope for redevelopment into housing or mixed-use schemes. However, the rise of build costs over recent years is having an effect on residual values. 

With appetite looking positive, vendors holding underutilised land should consider bringing it to market while planning policy remains supportive. Obtaining planning advice in advance will help drive buyer interest and maximise value.

Retail and Leisure

The retail sector continues to face challenges with cost-of-living pressures still impacting consumer spending. High streets particularly feel the strain, while some shopping centres showed positive leasing activity in Q1, driven by major brands and new entrants, overall footfall remains lower than average. 

For vacant secondary retail properties, the market is currently declining and it may be a time to consider disposal before values decline further. For tenanted assets, regearing leases before sale can provide buyers with greater security of tenure, which will enhance the sales prospects of an asset. Where tenants are underperforming its worth considering grounds to serve notice and either selling with vacant possession, or sourcing a new tenant prior to disposal. 

High inflation, rising business rates and squeezed margins are creating challenges for both tenants and landlords, often resulting in prolonged vacancies and making sales more difficult. 

Retail parks remain a standout performer, with low vacancy rates around 6.2% and rising rents fueled by strong tenant demand and a shortage of new stock. This segment continues to outperform traditional high streets, as shoppers favour convenience and easy access. 

Care and Independent School Sectors

Alternative sectors continue to outperform traditional assets, with investors increasingly targeting opportunities in care, healthcare, independent schools and data centres.

The care sector in particular is showing strong signs of recovery, driven by robust tenant demand, rising care fees and improving operator performance. Investor appetite has more than doubled in the past year, with 35% now actively pursuing
care home assets as confidence returns and financing pressures ease.

Although sectors like independent schools still face challenges, particularly in light of recent VAT and operational cost hikes, the wider picture across alternative sectors remains resilient and offers opportunities for long-term growth.

We’re seeing first-hand how these shifts are influencing decision-making, with our restructuring and recovery specialists supporting clients in reassessing their portfolios.

Distressed Assets

Distressed asset sales are expected to rise as refinancing pressures continue to bite. Although inflation is easing and interest rates may begin to soften, they remain well above historic norms, making refinancing difficult for many. Many landlords are feeling the squeeze, particularly where rental income isn’t keeping pace with rising costs. As a result, more properties are slipping into distressed territory and coming to the market.

We’re seeing growing interest from buyers with access to capital who are looking to capitalise on these distressed assets and reposition them for long-term growth.

Some say the divide between winning and losing assets is becoming clearer, however on the ground and with the right expert support there are still opportunities to grab hold of. While investor sentiment is cautious, the appetite for the right assets is still there.

“At Landwood, we’re helping clients navigate these shifts, bridging the gap between buyers and sellers in a changing market. Whether it’s repositioning underperforming assets, managing distressed sales or navigating new sustainability standards, we’re here to deliver expert, partner-led support where it matters most.

For any enquiries or general advice we would be happy to help. Please contact us on 0161 9670122 or use the email addresses below:

Amy Selfe, Associate Director: amy.selfe@landwoodgroup.com

James Ashworth, Partner: james.ashworth@landwoodgroup.com

You can see all of the available commercial property listed by Landwood Group on NovaLoca here.

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