2018 is finally upon us and there’s certainly a lot to look forward to in the commercial property world – but what was 2017 like?
We’ve compiled a list of 40+ key commercial property statistics and put them into what we’re calling the ‘Commercial UK Property Overview 2017’. All of the facts included come courtesy of research from The Office of National Statistics, The Property Investment Alliance and DATSCHA.
So what did 2017 look like in the commercial property world?
- The UK commercial property investment volume for H1 2017 was £27.2 billion.
- In 2017, London remained the region with the largest number of businesses; representing 18.9% of the UK total.
- 39% of total commercial property investment in H1 2017 was for offices.
- Corporate businesses represent over 70% of total UK businesses.
- Total returns were around 5.5% for UK commercial property in 2017.
- The growth of businesses in London accounts for 25.2% of total growth in the UK.
- The region with the 2nd largest share of UK businesses is the South East, at 15.1%.
- Q3 2017 heralded the 5th consecutive rise in London quarterly offices take-up, reaching 3.1m sq ft.
- London office vacancy now stands at 5.5%, a four year high for the capital.
- London office availability reacheded 11.9 million sq ft in 2017.
- London office take-up rose above the 10-year quarterly average in 2017.
- London office investment volumes in Q3 2017 totalled approximately £3.4 billion.
- London office take-up rose by 38% quarter-on-quarter in 2017, the highest 3-month rise for 3 years.
- London City office investment volumes rebounded, to stand at £2.3 billion in Q3 2017.
- 45 million square feet of commercial property is built every year.
- The commercial property industry directly contributes over £14 billion in taxes.
- Commercial property accounts for 13% of the value of all buildings in the UK.
- Overall, commercial property accounts for about 10% of the UK’s net wealth.
- Commercial property represents 13% of the built environment, which has a total value of almost £7 trillion.
- Since 2000, the value of the UK’s commercial property stock has grown by an average of 3.0% each year.
- Investors now own £486 billion worth of commercial property in the UK, representing 55% of the total.
- Overseas investors now own 29% of UK commercial properties held as investments.
- The commercial property industry employs 1.1 million people.
- The UK’s commercial property investment sector is the largest in Europe.
- Commercial property accounts for 10% of the UK’s energy consumption.
- Commercial and other non-domestic buildings (excluding factories) account for only 12% of CO2 emissions.
- 76% of all East London commercial property investment in 2017 focused on office space.
- There was a 60% higher average value per transaction in East London compared to West London in 2017.
- 68% of all commercial property investment in East and West London during 2017 was from overseas.
- 70% more UK commercial property investment was attracted to West London compared to East London in 2017.
- In 2017, there was a total of £9.7bn invested in commercial property throughout East London.
- £7.4bn was invested in East London office space in 2017.
- The average value of West London transactions had been almost 40% lower than East London during 2017.
- There was £10bn total investment in West London commercial property in 2017.
- West London commercial property attracts 73% more domestic investment than East London.
- There was 77% more investment in West London developments than those in the East in 2017.