Dr. Robert Kelly:

Commercial real estate is a little different from residential real estate in that there would be a lot of lease agreements. Another thing that is quite a big factor is the type of commercial real estate. There is a difference between buildings with a very high climate rating, ESG and all of these things that we would look at, so those buildings will attract higher rent and higher levels of demand.

We need to think carefully about what that means for a stock of buildings, especially in a market where the demand is lower and whether they need a retrofit scheme. The market might segment even a little bit more and we may see some buildings being reused for something different. There is very different demand across office space, for example, and logistical space. We have seen that divergence where previously there was an uplift in demand for all types of commercial real estate. There are unique stories underneath what is going on at the aggregate.