Our business drivers and markets

Technology continues to reshape consumer behaviour in how we work, shop and live with profound consequences for real estate.

Adoption of online shopping continues its upward trajectory increasing demand for logistics warehousing to store, move and manufacture goods. As consumer expectations rise for faster delivery, so the need for better urban logistics increases.

Data centres also offer growth prospects but remain a complex sector with availability of power a major constraint. Operational retail property has suffered as consumers pivot further towards an omnichannel model, resulting in significant value erosion across many part of physical retail. Offices are also impacted by technological disruption as well as other headwinds such as accelerating obsolescence, changing occupier preferences, rising sustainability costs and shortening leases.

Consumers increasingly value time, prioritise experiences over material goods and seek better quality healthcare. Real estate aligned to these trends is structurally well supported.

Convenience retail benefits from demand for better value and more convenient store formats. Supported by lower online penetration in food, smaller format convenience grocery stores are seeing particularly strong growth.

Hospitality and entertainment operators are benefiting from economic and generational shifts towards staycations and experiences, supporting demand for budget hotels and theme parks. Healthcare is underpinned by strong demand from an ageing and growing population.

The UK population is projected to increase by 7% from 2022 to 2032 and see a rise in ageing population. This is providing structural tailwinds for sectors that service retirees, including healthcare, as well as increasing the need for housing and efficient urban infrastructure, particularly urban logistics warehousing.