Disruptive change leads to opportunity

Any form of uncertainty is disruptive. The hung parliament result of the June general election, with no party obtaining a majority, created renewed doubt at a time when the electorate needed strong leadership and direction to navigate the complicated process of Brexit. 

However, the economy’s resilience immediately following the vote calls into question the link between political uncertainty and economic activity. More importantly perhaps, it is the ongoing negotiations with the EU which many occupiers and investors are keeping a close eye on, before making real estate decisions.

It is currently difficult for many UK based businesses to make long-term strategic decisions about expansion, growth and investment due to the unknown outcome of the exit process. As a result, we envisage occupier demand for space in some sectors to ease moderately over the next two years. However, there remains relative stability in demand across most occupational markets and significant supply restrictions versus their long term averages.

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