Brexit’s impact on business & workspace
It’s safe to say 2016 has been a turbulent year for UK businesses, with stock markets doing loop the loops and the pound plummeting.
As the year reaches its finale, we reflect on how Brexit has affected our businesses and the way we work, and why now is the perfect time to consider moving into a flexible workspace.
Post- referendum flexibility
In an ever-changing, unpredictable Brexit climate, people don’t want to be tied into long leases.
Over the last decade, the serviced office industry has grown by around 67 per cent, according to research carried out by Deloitte Real Estate. The office market has effectively adapted to changes in the economic and political landscape, discarding the five year fixed-term agreements of old and embracing the recent trend for short term leases.
The appetite for serviced office space spiked in the months following the Brexit referendum. In central Manchester for example, prime office space is set to hit 1 million sq ft by the end of the year. Similarly, our own Search Office Space lead figures show that interest in serviced office space rose by over 5% between June and July 2016, defying industry doubts that demand would decrease.
Richard Smith, Search Office Space’s CEO explains:
‘The serviced office option is proving increasingly popular with business owners and entrepreneurs alike: not only are they the most cost-effective option, they are the most time-effective option. Companies can spend time saved managing their workspace on growing their business.’
Many office providers witnessed an increase in foreign interest in UK serviced office space post-referendum, with international companies looking to utilise the sterling’s weakened position in the market.
It’s also interesting to note that commercial property prices were predicted to fall up to 20% after Brexit, allowing our consultants to negotiate more competitive workspace prices for you.
You can keep up-to-date with how corporations are reacting to the referendum on Bloomberg’s Brexit tracker:
- Economic hits: Apple increased the price of some products by 20% in the UK
- Jobs & investment: Brexit uncertainty caused London financial services to stop hiring
- Headquarters moves: Lloyd’s of London will move a portion of their business to the European Union if access to the single market is denied
Brexit aside, the business landscape is changing. Millennials in particular are adopting a flexible approach to working. 600 000 startups were set to launch this year and 1 in 7 people are self-employed; new ventures and short-term projects just aren’t compatible with traditional agreements.
What’s the deal?
In times of economic and political flux it’s even more important for companies to keep their options open. Long-term leases can be unnecessary burdens in this day and age; it’s always good to know you can move quickly and cheaply as your business grows or downsizes.
Serviced offices are the best option for startups in times of high-risk and more established companies who anticipate the impact that factors such as Brexit trade negotiations might have on revenue.
- Flexible leases and rolling contracts starting from 1 month
- The option to scale up or down as requirements change
- Range of services included- IT, telephony, reception, utilities + more
See our blog post ‘Why choose a serviced office?’ for more information.
With article 50 yet to be triggered and the terms under which we leave the EU somewhat unclear, it’s difficult say for certain what the long-term impact of Brexit will be.
That being said, it’s reasonable to assume that the need for serviced office space will continue on an upward trajectory, especially in the wake of the US presidential election.
Our job is to find you a flexible workspace for the best price, free of charge. Get the ball rolling today: speak to one of our dedicated consultants who will shortlist options and arrange viewings for you.