June 29, 2016
Brexit; a round-up of latest thoughts from the property and workplace sectors 0
Whatever your opinions on Brexit, there’s no doubt that it has created a range of frequently turbulent knock on effects in the workplace, commercial property, design and architecture sectors. We’ve shared some of the latest views on the next page to go with the initial reactions delivered by a still shell-shocked world that we published last Friday. One thing seems pretty clear is that for most firms, including those in the commercial property sector, there is no rush to judgement and most are prepared to continue business as usual while so much remains undecided. For the same reasons, the FT is reporting that some developers are putting projects on ice until they have more certainty and a report from researchers Green Street suggests that the eventual decision to leave the EU will result in a substantial fall in real estate values. Meanwhile, CIBSE is the latest organisation to calm fears about the impact of the UK leaving the EU.
July 4, 2016
New office market briefing remains cautious about impact of potential Brexit 0
by Mark Eltringham • Comment, Company news, Knowledge, Property
JLL has published a new briefing document to look at the possible impact of the recent Brexit vote on the UK’s office market. The report’s main claim is that the underlying economic fundamentals in the UK remain solid in comparison to previous downturns, and, while expectations are unsurprisingly being downgraded, there is still no need for occupiers or landlords to become too concerned at the moment before the full details and effects of the UK’s exit from the EU become apparent. The document also suggests: occupiers are taking stock, so flexibility is likely to become fundamental to near term decision making. Longer-term impacts or benefits of Brexit are still to play out; office occupier demand in London will be subdued in the near term although low vacancy levels, coupled with an increasingly diverse occupier base, should prevent a dramatic fall in rents compared to previous market corrections; hotels will benefit from weakened sterling and increase in tourism although they may see costs increase.