The specialist lender said it had seen an increase in applications for office-related projects, and said this was “rising sharply” in the first half of the year.
It said there was a 44% rise in landlord applications for total office space projects over the first half of this year. This was most prevalent in some regions where demand more than doubled, such as the South West with a 233% rise in applications and the West Midlands with a 225% surge.
Applications in London and Wales rose 100% separately.
In Yorkshire and the Humber, Shawbrook recorded an 83% uplift, while there was a 50% rise in the South East.
In contrast, applications fell by 60% in East Anglia, 20% in the East Midlands and 14% in Scotland.
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Landlords turning to new asset classes
Daryl Norkett, director of real estate proposition at Shawbrook, said: “Diversification has been the theme of the past couple of years for professional landlords, who continue to demonstrate agility and adaptability in the face of ongoing market and economic challenges.
“With Covid firmly in the rear-view mirror, businesses are adjusting to the new normal, which for many includes a return to office working – as evidenced by a 100% increase in applications for London office projects.
“As economic turbulence looks set to be on the cards for the foreseeable future, professional landlords should be looking to take advantage of increasing demand across different asset classes to maximise their yield and protect their business. Talking to a specialist commercial broker could be beneficial for landlords looking to expand their portfolios and navigate the market effectively.”
