Unlocking Value in a Challenging Market: October Breakfast Roundtable Recap

It was great to sit down this month with a number of key figures from across the property industry for another PRE Breakfast Roundtable – a lively discussion exploring how landlords, investors and asset managers are continuing to unlock value in a challenging market.

This month’s conversation centred on four core themes: Lease Restructuring, ESG Pressures, Voids, and Asset Resilience. As always, the discussion was open, insightful, and full of shared experience from those navigating today’s market first-hand.

Lease Restructuring & Tenant Retention

In the current market where stability is harder to guarantee, flexibility has become the new currency. Shorter leases, turnover rents, and creative incentives are no longer stopgaps – they’re shaping how landlords and occupiers build lasting relationships. The challenge is striking the balance between adaptability and long-term value.

Are short, flexible leases now a long-term norm?
They’re certainly becoming the rule rather than the exception – particularly in markets where occupier confidence remains mixed. Flexibility gives tenants the breathing space to adjust their footprint and growth plans without committing to long leases. For landlords, it’s about balancing long-term security with flexibility. Shorter leases can work well when there’s open communication and regular reviews built in.

What’s working to keep occupiers in place?
A proactive approach makes all the difference. Early engagement ahead of lease events, clarity around service delivery, and tailored incentives (from rent-free periods to sustainability improvements) are proving effective. Occupiers are also placing greater value on the quality and performance of their space – ESG credentials, maintenance standards, are all factors making a real difference when it comes to retention.

The Real Cost of ESG Compliance

ESG remains front of mind for both investors and landlords with the EPC threshold due to rise from E to B by 2030, but so do the rising costs associated with compliance. Landlords must look to balance compliance costs with long-term asset value – particularly for older stock, where upgrades can be complex and costly. Capital planning, and data-driven decisions are going to be key to managing risk.

EPC ratings: stick or twist?
For many landlords, the question is whether to invest heavily now or wait and see how the market evolves. The best approach often depends on the asset’s age, location, and tenant profile. In some cases, smaller, targeted improvements – like LED upgrades, insulation, or efficient HVAC systems – can deliver significant gains without major capital outlay. For older or more complex buildings, however, a full refurbishment plan might be the only viable route to achieving future compliance.

Capital planning for Net Zero goals
A clear, phased plan is key. Portfolio-wide energy audits and lifecycle assessments can help identify which buildings to prioritise and when. The most successful owners are those who link sustainability improvements to wider asset strategies – for example, aligning refurbishment works with upcoming lease events or tenant fit-outs. This approach helps to spreads cost, minimises disruption, and keeps progress realistic.

PRE Chartered Surveyors’ highly experienced team of consultants can help you to identify realistic and cost-effective opportunities for sustainability and energy efficiency at every stage of the property life-cycle. Visit our Sustainability Services page for more information.

Generating Value from Voids

Voids are a reality in most portfolios, but they don’t have to mean lost value. The conversation around empty space has shifted – with landlords increasingly exploring short-term uses, licensing, and community-focused initiatives to generate both income and engagement while protecting long-term asset performance.

Pop-ups, licensing, short-term wins – worth the effort?
In many cases, yes. Short-term occupiers can activate a space, create local interest, and generate interim revenue while a longer-term strategy is put in place. Pop-ups and licences are also a chance to test new ideas, attract different audiences, or support smaller businesses. The key is choosing occupiers who align with the asset’s brand and long-term vision – otherwise, the short-term win can come at the expense of future positioning.

Managing reputational vs. financial returns
It’s all about balance. While temporary uses may not deliver high immediate rents, they can add reputational value by keeping a building visible, vibrant, and relevant. A well-chosen temporary occupier can even enhance an asset’s appeal to future tenants. The best outcomes come when landlords look beyond quick income to consider the wider impact on community perception and long-term asset strategy.

What’s Next for Valuations & Exits?

With transaction volumes still subdued, the conversation turned to how value is now being defined. Buyer profiles are shifting – from institutional investors to private equity and family offices – and that’s reshaping pricing strategies.

Many attendees shared experiences of repositioning assets for sale, focusing on ESG readiness and income stability as the two biggest drivers of perceived value. Preparing for disposals in a higher-for-longer interest rate environment is forcing investors to rethink timing and exit strategy.

Across every theme, one message was clear – value creation now depends on agility. From rethinking lease terms to planning realistic ESG upgrades, property owners who adapt early are the ones best placed to protect and grow asset value in the years ahead.

A huge thank you to everyone who joined us for another insightful session. We are now taking a break over Q4 and look forward to continuing the conversation in the new year.

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