Post-Iran volatility impacting sectors in nuanced ways
- Index heads back to trend, but wider pressures remain
With wider geopolitical issues also impacting development viability, new project delivery remains muted. Competitive tendering is successfully keeping costs down, to a degree, which is reflected in the latest readings of our Build: Perspective index.
- Workplace investment must earn its place in regional offices
Grade A and prime space made up 61% of Big Six take-up in H1 2026, and prime vacancy is just 1.9%. With build and fit-out costs rising, landlords need to pick amenities that attract tenants without hurting viability.
- Prime office demand is proven, but delivery is stalling in London
Grade A space made up 94% of Central London take-up in H1 2026, and City prime rents hit a record £116.73 per sq ft. Even so, viability challenges are holding back new development starts. For developers who can build, there is an opportunity to deliver into a thinning pipeline.
- I&L sector weighs options around extreme heat
Historically, UK warehouses have been designed to keep the heat in during winter. The heatwaves experienced over summer 2026 will prompt a wider discussion around what features could be designed into future schemes to mitigate for extreme heat which impacts both human and robotic labour.
- AI is starting to impact what users want from science buildings
Future science buildings must be designed around flexibility, power resilience, cooling capacity and structural loading from the outset as AI becomes embedded across drug discovery and R&D.
- Refurbishment evolving a route into PBSA investing
Rising development costs are making new PBSA increasingly difficult to deliver. Refurbishing well-located existing stock can unlock rental growth, improve operational performance and maintain affordability, provided investors carefully manage technical, regulatory and delivery risks.
Read the articles within Savills Build: Perspective report below
