Location, quality and flexibility shape the next leasing cycle

RECI

Commercial real estate is moving through a more selective phase in 2026, with businesses placing greater emphasis on how property supports wider operational and growth objectives. The focus is increasingly shifting away from simply securing available space and towards choosing locations and buildings that can improve efficiency, strengthen customer or employee experience, and provide flexibility as market conditions change.

One of the clearest themes is the continued preference for high-quality, well-located commercial property. Limited development pipelines in many established markets are contributing to tighter availability of prime space, while occupiers are becoming more deliberate about the buildings they select.

For retail businesses, location remains central to leasing decisions, particularly where a site can offer strong visibility, accessibility and relevant customer traffic. However, the value of a retail location is increasingly linked to the quality of the customer experience rather than footfall alone. Physical stores are being considered as part of a broader engagement strategy, with occupiers assessing how design, services, technology and amenities can contribute to the role of the space.

The same emphasis on quality is influencing office markets. Businesses are reviewing how workplaces support productivity, employee retention and changing working practices. Modern infrastructure, reliable technology and stronger amenities are therefore becoming increasingly important considerations. At the same time, companies remain focused on cost control and space efficiency, creating a market in which occupiers may favour better-quality buildings while managing overall space requirements carefully.

Energy efficiency is becoming closely connected with both operating costs and property selection. Businesses are paying greater attention to energy availability, building efficiency and infrastructure resilience as power requirements increase and energy costs remain an important part of operating budgets. Properties that can manage these requirements effectively may be better positioned as occupier priorities evolve.

Real Estate Credit Investments Limited (LON:RECI) is a closed-end investment company that specialises in European real estate credit markets. Their primary objective is to provide attractive and stable returns to their shareholders, mainly in the form of quarterly dividends, by exposing them to a diversified portfolio of real estate credit investments.

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