MSHB

The impact of COVID-19 and the subsequent lockdowns has resulted in an unprecedented shift by employers towards adapting a more flexible working policy. Whilst many companies have now enacted formal hybrid working policies and appear to be moving away from the traditional office unit set up, Scottish commercial property has had its best first half of the year for investment volumes since 2018.^[1] As we move forward from the pandemic, we consider its continued impact on the commercial property market.

The impact of COVID-19 has undoubtedly accelerated a shift in consumer behaviour towards online shopping. This increase has resulted in an unprecedented time for traditional shopping centres like Buchanan Galleries and the St Enoch Centre, with many shoppers now opting to do the majority of their shopping from the convenience of their own home.

The sharp rise in energy costs has undoubtedly been one the major talking points of 2022 so far. The hike in prices has not only been felt by home-owners, but also by commercial property proprietors and tenants alike. With no sign of energy prices falling, the energy efficiency of commercial buildings is becoming an increasingly important consideration when buying, selling or leasing.

On Monday 17^th January, Crown Estate Scotland (the Scottish Government Corporation responsible for management of property in Scotland owned by the monarch) announced that 17 of 74 bidders had been successful at this stage of the ‘ScotWind’ programme. The successful bidders have been granted an opportunity to take the lead in the development of Scotland’s off-shore windfarms and help drive the nation towards its target for net-zero carbon emissions by 2045.