More frequent movers after Brexit ?

Comment this week from the CEO of Citibase suggests that the market uncertainty triggered by Brexit will lead to even shorter leases, than the current 6-7 year average. Citibase say that the trend towards flexible working is growing, with businesses needing the ability to cope with unpredictable events such as Brexit.

If large numbers of foreign businesses move out of the UK it could lead to an increase in the supply of secondary office space. This would mean many landlords would look to make space income generating even if it meant accepting short leases.

Metropolis’ direct weekly research with hundreds of office tenants suggests increasing numbers looking for and being offered, short term leases of three years or less. In recent weeks Metropolis has reported on short term office lease agreements by companies such as insurer Manulife; retailer Monica Vinader; software group SanDisk; law firm Carbon Law and media group Ominicom. May more future requirements involve searches for flexible space on leases not exceeding five years.

Small businesses continue look to shed inflexible long-term leases in favour of flexible offices.

Citibase point out that long-term leases were dying out well before Brexit, but believe that the process will be hastened by the uncertainty of current market conditions.

If the average lease length falls even further, this implies that office moves will become even more frequent and could become a fact of life every five years for many firms.

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