The term 4IR was coined in 2016 by Klaus Schwab, founder of the World Economic Forum to describe a new chapter in human development, enabled by extraordinary technology advances and, in the past two years, the impact of this revolution has been exacerbated by the pandemic lockdowns. The widespread take-up of Zoom, Teams and other communication platforms has enabled hybrid working in many industries; app-enabled food delivery services have mushroomed throughout the country and online shopping for everything from clothes to groceries to white goods soared. As a result, office spaces, catering outlets and retail properties are having to adapt and change. 

The huge rise in hybrid working means that many people are now going into the office for specific tasks that involve collaboration and interaction. Employees increasingly expect the workplace to be, if not as comfortable as home, certainly a close second. Consequently, demand is rising for higher quality commercial properties conducive to collaborative working which needed to attract staff. In addition, tech-enabled buildings are becoming standard in some areas. 

The growth of online ordering services like Uber Eats, Just Eat, Deliveroo and others have led to an emerging trend for so-called ‘dark kitchens’. Also known as ‘cloud’, ‘ghost’ and ‘virtual’ kitchens, they sell meals exclusively for delivery via an online or app ordering service, with no sitting capacity for diners.

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The dominance of e-shopping means that older buildings are being repurposed as warehouses and logistics centres in strategic locations. The contours of the high street itself are also changing, with increased demand for hospitality outlets underpinning the trend for more residential-to-commercial conversions — a direction of travel likely to continue as more towns pedestrianise their centres in order to encourage more footfall.

It’s not just worker and consumer behaviours that are undergoing radical shifts and impacting what we demand from commercial property, of course. We are also rethinking our ethics. Many of us now prioritise the sustainability and green credentials of the businesses we deal with and work for more than ever before as investors, staff, and customers — and that extends to the properties owned and used by a business. The regulatory standards for EPCs on commercial property, which dictate a minimum rating of E before a lease can be granted, should logically bolster this move to improved sustainability. 

Whether they are retrofitted older buildings or new ones with better green credentials, sustainability is highly likely to be a key feature in the workplace of the future.

These are exciting times for commercial landlords with their finger on the pulse of the market, and commercial brokers have a great opportunity to really add value to their customers. Commercial cases can of course vary enormously in scope and complexity, and arranging the most appropriate finance for these projects can be a challenge. Happily, lenders such as InterBay understand the needs of commercial landlords, having operated in this space since 2006. Our expert specialist finance account managers and experienced underwriters can work with brokers to tailor the financial package required for each venture in the most cost-effective and time-efficient way.