Publication

Brexit Briefing: The Impact on UK Regional Offices

18 July 2016

Where next for the markets?

Summary

■ Significant changes in the political environment, in the UK, have dominated the news flow in the past couple of weeks. The appointment of a new Prime Minister has assisted in providing the first stage of stability.

■ We are expecting that investment volumes will fall over 2016-20, as the total returns being produced by commercial property reduce.

■ We think that the regional office occupational markets will be more ‘cushioned’ compared to the London markets as they are less reliant on inward investment and more reliant on local economic dynamics.

■ The reason why we see pricing correction to be much smaller than in previous cycles is that it will be a function of the relationships between buyer and seller, rather than a collapse in the occupational markets, which has been the driver of the larger cyclical movements in yields that the UK has experienced in the past.