Unlocking value: Active management and leasing strategies that power Private Equity

Investment into UK commercial property presents a compelling opportunity for value creation as capital markets see an increase in stability and liquidity. While investment volumes have grown through Q2 2025, the overall market remains stable with yields holding firm. These conditions provide an encouraging environment for investment, yet the hesitancy and indecisiveness of businesses to enter into leases reflects the general uncertainty around wider geopolitical activities, such as international conflicts and securities volatility.

In order to generate superior returns, investors must shift their focus from simply acquiring assets to actively managing them, concentrating on lease structures and flexibility for tenants. A well-executed leasing strategy will not only secure tenants, but may also create tangible value.

Some of the top considerations for investors include:

Flexibility

In uncertain markets, modern tenants seek flexibility. By offering lease terms that are dynamic, agile and can adapt to a tenant's evolving business needs, an investor can make a property more appealing and reduce the risk of vacancy. Break clauses, expansion rights and the option of short-term solutions can re-position a property as a modern, tenant-centric asset, enhancing not just marketability but short and long-term value as well.

Tenant type

Finding the right tenants for your property could help drive up value. The Savills report advised that London has kept its title for the fifth year in a row as the world's most expensive warehousing market. Businesses particularly in the logistics and industrial markets are searching for strong infrastructure close to a large customer base, and the consistently high demand for these properties continues to drive rental yields. Appealing to these tenants and being actively involved in ensuring the tenancy is fit for their purposes will ensure your property remains attractive, commands premium rents and remains occupied.

Increased pressures to meet ESG standards

As environmental regulations continuously evolve in line with net zero and carbon reduction policies, the pressure on businesses to meet ESG expectations according to their industry or consumer base increases. Investors can create significant value by upgrading properties to meet higher sustainability standards. A robust leasing strategy will incorporate these upgrades, attracting corporate tenants looking to benefit from occupation of green-certified spaces. Not only will this future-proof the property and improve long-term commercial viability, but it will also attract more high-value tenants.

In a market showing signs of stable yields, investors should consider taking an active management role in their assets to create value. Simply acquiring assets is not enough; forming a leasing strategy to make the property more appealing to high-value tenants will unlock value, secure significant returns and make the property stand out in the competitive UK commercial real estate market.

How we can help

At Foot Anstey, our private equity specialist real estate team can advise you on value creation within your portfolio, leasing decisions and landlord and tenant matters. If you or your business would like to discuss your properties or are a tenant seeking advice on a lease, please do get in touch with our team.