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D7
Office vs Industrial Investment
Two very different sectors. Offices face structural headwinds and MEES pressure; industrial has led returns but trades at keener yields.
Compare your options
Office
Pros
- Higher headline yields in secondary markets
- Prime, green offices let well
- Active management upside
Cons
- Hybrid-working demand headwind
- Older stock carries MEES risk
- Higher void risk outside prime
Best for: Prime, energy-efficient, well-let buildings, or value-add plays you can upgrade.
Industrial / logistics
Pros
- Strong structural demand
- Lower MEES risk on modern sheds
- Resilient income
Cons
- Keen pricing (tight yields)
- Rateable values rose sharply in 2026
- Rental growth assumptions matter
Best for: Income investors wanting resilient demand, if the entry price stacks up.
Worked scenarios
Secondary office vs multi-let industrial estate
| Option | Outcome |
|---|---|
| Office | Higher yield on paper, but budget for MEES works and voids. |
| Industrial | Lower yield, stronger demand and lower obsolescence risk. |
Decision checklist
- Model the yield with realistic voids and, for offices, MEES capex.
- Check the EPC and MEES exposure of any older building.
- Factor the 2026 rates position, especially for larger industrial units.
- Assess covenant strength and unexpired lease term.
Relevant tools
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