As a lawyer specialising in representing retailers and landlords, I have seen first hand how the property industry has weathered its share of challenges in recent years. The pandemic disrupted footfall, changed working patterns, and put significant pressure on landlords and tenants alike. However, 2025 is shaping up to be a turning point, with notable signs of recovery in London’s retail and office property sectors.
Is the confidence coming back to retail?
The retail property sector, particularly in London, is experiencing a remarkable upturn. Investors have returned to shopping malls, according to a recent CBRE report a reported £2 billion has been spent in recent months—the highest level since 2016. Stabilised net operating incomes, reduced vacancies, and a renewed appetite for prime retail space are driving this resurgence.
For landlords, this is a critical moment to engage in strategic lease negotiations that balance tenant incentives with long-term stability. Retailers, on the other hand, are seizing opportunities to secure prime locations as consumer confidence grows.
Notably, the food and beverage industry is, according to a recent Colliers report, leading the charge in demand for retail spaces, followed closely by fashion and leisure operators. For landlords, tailoring space to these tenants’ needs—whether through flexible layouts or attractive rent structures—can ensure maximum occupancy.
Offices: The Shift to Quality
The Central London office sector has also shown strong signs of recovery, underpinned by a focus on Grade A office space. According to Cushman & Wakefield, premium office leasing accounted for 77% of activity in 2024, with take-up volumes exceeding pre-pandemic averages by 4%.
This demand reflects an ongoing shift: businesses are prioritising quality over quantity. Hybrid work patterns have reduced overall space requirements, but employers now seek top-tier offices that offer sustainability, wellness amenities, and central locations to attract talent back into physical workplaces.
As a lawyer, advising landlords on repositioning older stock to meet modern standards is a key focus. This includes navigating the legal complexities of refurbishments, ensuring compliance with environmental regulations, and negotiating terms that reflect the premium nature of these properties. For tenants, the emphasis is on securing leases that provide flexibility, allowing them to adapt as their needs evolve.
What This Means for the Market
This upturn in both sectors presents opportunities and challenges. Landlords must be proactive in adapting to changing tenant demands, while retailers and office occupiers should capitalise on favorable market conditions to secure advantageous deals. For both parties, expert legal advice is essential to navigating this dynamic landscape.
As the recovery gains momentum, collaboration between landlords and tenants will be pivotal. By focusing on long-term partnerships, both parties can not only weather economic shifts but also thrive in this new era of growth.
The London property market is, once again, a beacon of opportunity.
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