To hear a lot of business and commercial property experts speak in the weeks immediately following the Brexit vote, one would think that commercial property in cities like London and Manchester was on the verge of collapse. Those fearful of the UK’s future were convinced that companies of all sizes would be exiting the UK as a result of our decision to leave the EU. Reality says otherwise.
More than a year after the historic referendum, the commercial property market is defying Brexit fear in a big way. As a commercial property adviser, I see first-hand that investors are not scared of Brexit. They certainly do not share the views of those media pundits who continue to forecast gloom and doom.
The point being made here is that there is no need to fear your company’s expansion or relocation. If you need more space to keep doing what you do, let’s start looking at how we can get you that space. If it’s better to build, let’s build. If relocation to existing space is more advantageous, let’s start looking at spaces that might be suitable.
Billions in Foreign Investment
Anyone who still has serious doubts about our economy in a post-Brexit world need look no further than foreign investors who are now flooding the UK with billions of pounds. For example, Business Insider recently reported on foreign investors having poured some £12 billion into our commercial property sector through the first six months of 2017. That is up 24% during the same period in 2016.
Some of the more well-known buildings sold to foreign investors include the Walkie Talkie and Cheesegrater skyscrapers in London. Now, before you assume investors have wasted their money on two buildings that will be largely empty in the wake of Brexit, think again.
Business Insider says that the Walkie Talkie is 100% leased with deals averaging 13 years. The Cheesegrater is also 100% leased. Their average deal is 10 years. Business Insider correctly states that the Brexit vote and its negotiations will be long gone by the time the majority of the two buildings’ leases expire. This indicates that the companies that signed those leases have full confidence in our post-Brexit economy.
Your Commercial Property Goals
Commercial property consultants may vary in their opinions of an EU-free future. However, most of us agree that commercial property is not suffering as so many said it would. The commercial property sector is as robust as it has ever been.
Now is a great time to seriously consider your own commercial property goals. As long as the pound remains relatively weak and the commercial property market remains stable, there will be plenty of great deals to be had. Now is the time to make the most of your building or relocation budget.
My job as a commercial property adviser is to help your company make the most of its opportunities. Reach out to me. Let’s talk about your company’s commercial property goals.
Sources:
Business insider – https://www.businessinsider.com/whats-driving-chinese-investment-in-London-real-estate-2017-9?r=UK&IR=T
By John Parkinson.
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