Brexit’s Impact On The Office Leasing Market

The UK has officially left the EU, and the rest of the year will determine how the property sector will be impacted.

Although leasing activity was plentiful in 2019, data from DeVono Cresa found that businesses were wary in terms of the volume of space leased, especially in central London.

2019 data found that the average size of office space leased dropped 15% and all major business sectors saw a dip in size of space taken.

“Brexit is of course only one-factor influencing decisions on space planning, with others including the steady increase in the use of technology, the need for more agile working, and an increasing focus on staff wellbeing,” said Shaun Dawson, head of insights at DeVono Cresa. “Another sign of previous economic and political uncertainty is the uplift in interest in short-term and flexible leasing.”

Using fully serviced offices provides managers a way to alleviate short-term uncertainty and gain access to various facilities such as well-design spaces, fitness facilities, meeting rooms and more.

According to Dawson, due to Brexit occurring during a shift in the office leasing market, it is important to engage in a reliable real estate partner that best suits your business’ needs.

Despite some uncertainty, the path to stabilization and high employment rate in the UK has led to a positive outlook for 2020.