While many companies throughout the UK are looking to reduce their property holdings over the next six months, the South West is bucking the national trend, with companies expecting to increase their property holdings in line with business optimism.
These are the findings of the six monthly Corporate Real Estate survey from the CBI and property adviser GVA Grimley.
The survey shows that businesses in the South West are considerably more optimistic about the future than the rest of the country, showing a balance of +40 per cent compared to the UK balance of just +6 per cent.
This positive view is supported by expectations on output and employment, with output in the region expected to grow at +21 per cent (compared to a national fall of -6 per cent) and employment falling at a lower rate than the national figure (-14 per cent compared to -28 per cent).
“This would indicate that the South West is being less affected by current circumstances than other areas,” says David Mace, regional senior director at GVA Grimley in Bristol.
“This positive outlook can be reflected in what businesses in the South West are intending to do with their property portfolios.
“Whilst space has been cut over the last six months, there is a belief that with the growth in output will come a need for additional space, despite the fact that employment levels will fall.”
The survey shows that over the next six months, whilst a net balance of -25 per cent of companies nationally are looking to reduce their property holdings, in the South West the balance shifts to +9 per cent looking to expand their property portfolios.
The CBI and GVA Grimley found that location and business expansion were the key criteria for companies in the region when making decisions about their property.
The proportion of companies with surplus property in the region is significantly lower than the national average, at 34 per cent (nationally 52 per cent). The impact of paying vacant rates has also had a noticeable impact for 66per cent of business in the region.
Manufacturing firms ‘more resilient’ Page 2
