Industrial demand continues to be supported by e-commerce growth, supply-chain restructuring, and exceptionally low vacancy rates of approximately 2-3% nationally. The sector is also benefiting from AI and technology integration, with modern warehouses increasingly requiring enhanced power capacity, high-speed fibre connectivity, and sustainable energy infrastructure to support automated systems.
On the other hand, “office markets, except for the highest-rated buildings, generally remain somewhat challenged from prior oversupply and the sustained working-from-home phenomenon”, Colhoun notes. “Lower-grade buildings have considerably higher vacancy rates and often require considerable renovation or are demolished.”
The challenging environment is reflected in business failure data, with arrears and payment defaults in office-heavy sectors including professional services, retail trade, and transport and logistics continuing to escalate through 2025.
A record 14,649 businesses become insolvent in 2025. Retail insolvencies recorded the third highest number of insolvencies at 1,010, followed by construction at 3,561 and accommodation and food services at 2,286.
Adding to the complexity, real estate professionals will face new compliance obligations from July 2026 when AML/CTF Tranche 2 regulations take effect, requiring comprehensive customer due diligence and beneficial owner identification.
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