Future of work newsletter free subscription Future of work newsletter free subscription Future of work newsletter free subscription
  • Marketplace
  • Resources
  • Business Directory
  • Events
  • Advertise
  • Brand Pulse
  • Publish a Press Release
  • Get the Newsletter
  • Contact
  • About Us
The FUTURE OF WORK® since 2003
Allwork.Space
No Result
View All Result
Subscribe
  • More
    • Columnists
      • Dr. Gleb Tsipursky – The Office Whisperer
      • Nirit Cohen – WorkFutures
      • Angela Howard – Culture Expert
      • Drew Jones – Design & Innovation
      • Jonathan Price – CRE & Flex Expert
    • Get the Newsletter
    • Events
    • Advertise With Us
    • Publish a Press Release
    • Brand PulseNew
    • Partner Portal
  • Latest News
  • Business
  • Leadership
  • Work-life
  • Career Growth
  • Tech
  • Design
  • Workforce
  • Coworking
  • CRE
  • Podcast
  • More
    • Columnists
      • Dr. Gleb Tsipursky – The Office Whisperer
      • Nirit Cohen – WorkFutures
      • Angela Howard – Culture Expert
      • Drew Jones – Design & Innovation
      • Jonathan Price – CRE & Flex Expert
    • Get the Newsletter
    • Events
    • Advertise With Us
    • Publish a Press Release
    • Brand PulseNew
    • Partner Portal
  • Latest News
  • Business
  • Leadership
  • Work-life
  • Career Growth
  • Tech
  • Design
  • Workforce
  • Coworking
  • CRE
  • Podcast
No Result
View All Result
Subscribe
Allwork.Space
No Result
View All Result
Home Business

Philip Grace: Global Uncertainty Suggests 2016 Won’t Be Business As Usual

Guest ContributorbyGuest Contributor
February 17, 2016
in Business
Reading Time: 2 mins read
A A
Global economy and impact on flexible workspace

Now well into 2016, can we expect the global flexible workspace market to continue its strong 2015 momentum? Keeping a close eye on the global economy, Philip Grace, founder of i2 Office and an expert on the flexible office market, believes 2016 may have some shocks in store for the serviced office industry.

I have a bearish opinion about the global economy. London is the capital of Europe and the world’s second financial city; yet what happens globally will impact upon demand for offices, flexible space and serviced offices in the city.

Financial liquidity could dry up in the market, caused, in part, by the low oil price (will it hit $10 a barrel?)

China’s economic slowdown

China is slowing with only 6.9% growth during 2015 and some forecasters are saying 6% in 2016. We have also seen how the world stock markets react to China catching a cold and adjustment globally.

Currently, China has circa £1billion of real estate transactions pending in the UK. There would appear to be a rush for Chinese companies to move into sterling, anticipating that the UK will be the stronger currency over the Yuan as China continues to slow.

Property yields could be impacted if there are fewer buyers in the future with the cash to purchase London real estate. Saudi Arabia and, more generally, the Middle East, might reduce their spending to mirror the impact of oil on their GDP.

Russia saw their economy shrink by 3.7% in 2015, the worst for six years. Banks are starting to deliver debt and low interest rates will help in the UK, but will the Fed increase US rates and slow the recovery of the economy in the States? The banks do have some exposure to debt in the oil industry, but how will that develop if the oil price continues to reduce in value and oil companies start to default on their loans?

We have also seen a steep rise in UK FTSE profit warnings. If we do go into recession, will funding still be available as demand for offices reduces? And, of course, the American elections, will it be Trump or Clinton? Both of these events could cause economic disruption. It would be wrong to assume that 2016 will be business as usual on the back of a prosperous 2015.

UK referendum on Europe

The UK serviced office industry saw some clients putting off decisions prior to the General Election last year, with fewer companies prepared to commit to space in March and April 2015.

Once the UK referendum on Europe is announced, international conglomerates could just ‘wait and see’ before coming to London. If the referendum is announced in February, as currently reported, how will that impact upon the market leading up to a September 2016 referendum?

More stories for you

How To Design Offices For A Future You Can’t Predict

How To Design Offices For A Future You Can’t Predict

5 hours ago
U.S. Environmental Protection Agency Closing Research Division, Cutting Workforce By 23%

U.S. Environmental Protection Agency Closing Research Division, Cutting Workforce By 23%

14 hours ago
Amazon Smart-Home Staff Must Prove AI Use To Get Promoted

Amazon Smart-Home Staff Must Prove AI Use To Get Promoted

14 hours ago
Majority Of Fortune 100 Now Require Full-Time Office Return, New JLL Report Reveals

Majority Of Fortune 100 Now Require Full-Time Office Return, New JLL Report Reveals

14 hours ago

Challenger European cities could also seize the opportunity to encourage companies to choose Paris or Berlin over London.

If the decision is ‘out’, London will survive, but the disruption whilst the UK exits Europe will last years. How will that affect the status of London as the second global financial city, behind New York?

Any of these events could cause economic disruption. What happens globally will impact upon demand for offices, flexible space and serviced offices in London.

I say again, it would be wrong to assume that 2016 will be business as usual on the back of a prosperous 2015.

I think it’s going to be a tough year. But I strongly believe in the sustainability of the industry and 2016 will also be a year of great opportunities and strong serviced office demand.

Share5Tweet3Share1
Guest Contributor

Guest Contributor

Guest contributors from across industries share workplace solutions, fresh ideas, and actionable strategies for modern professionals, forward-thinking leaders, and organizations navigating what’s next.

Other Stories Recommended For You

How To Design Offices For A Future You Can’t Predict
Design

How To Design Offices For A Future You Can’t Predict

byEmma Ascott
5 hours ago

Offices must support connection, flexibility, and the way people actually work today.

Read more
U.S. Environmental Protection Agency Closing Research Division, Cutting Workforce By 23%

U.S. Environmental Protection Agency Closing Research Division, Cutting Workforce By 23%

14 hours ago
Amazon Smart-Home Staff Must Prove AI Use To Get Promoted

Amazon Smart-Home Staff Must Prove AI Use To Get Promoted

14 hours ago
Majority Of Fortune 100 Now Require Full-Time Office Return, New JLL Report Reveals

Majority Of Fortune 100 Now Require Full-Time Office Return, New JLL Report Reveals

14 hours ago
Advertisements
Maximize Flexible Space Revenue
Advertisements
Workspaces Run Better On UltraSoftBIS

Unlock your competitive edge in tomorrow's workplace.

Join a community of forward-thinking professionals who get exclusive access to the latest news, trends, and innovations that are shaping the future of work.

©2024 Allwork.Space News Corporation. All Rights Reserved.

Exploring the Future Of Work® since 2003.

Advertise   Newsletters   Privacy Policy   Terms Of Use   About Us   Contact   Submit a Press Release   Brand Pulse   Podcast   Events   

No Result
View All Result
  • Home
  • Latest News
  • Topics
    • Business
    • Leadership
    • Work-life
    • Workforce
    • Career Growth
    • Design
    • Tech
    • Coworking
    • Marketing
    • CRE
  • Podcast
  • Events
  • About Us
  • Solutions
    • Advertise | Media Kit
    • Publish a Press Release
    • Brand Pulse
Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00