Simon Carter, chief executive of British Land Company PLC (LSE: BLND), sat down for a video interview at Nareit’s REITweek: 2026 Investor Conference in New York, June 1-4.
British Land has reported record leasing activity of approximately £200 million across its London office campuses and U.K. retail parks, fueled by exceptionally strong occupier demand. In London, office demand is running 50% above the long-term average, supported by a continued return to the workplace and growing leasing from AI and innovation companies.
With new office supply constrained—particularly in the City of London—the company expects vacancy to fall below 2%, creating favorable conditions for rental growth. Although British Land represents about 5% of the London office market, it captured 15% of leasing activity over the past year, rising to 33% in the fourth quarter, Carter explained.
Retail parks also continue to outperform, benefiting from the "three A's"—affordability, accessibility, and adaptability—which make them attractive to retailers supporting omnichannel strategies. With occupancy at 99%, rents are growing roughly 5% annually.
On capital allocation, Carter highlighted retail parks as the most attractive acquisition opportunity, offering approximately 7% yields with solid rental growth, while new office development remains compelling through a "de-risked, capital-light" model using pre-leasing, fixed-price construction contracts, and joint venture partners.