Some 43% of UK occupiers of commercial property expect to increase their property portfolios in the next six months, despite signs of an economic slowdown, according to the CBI/GVA Grimley Corporate Real Estate Survey conducted in October and November 2007. The twice-yearly survey revealed that 22% of corporates expect to reduce their property holdings.
Some 43% of UK occupiers of commercial property expect to increase their property portfolios in the next six months, despite signs of an economic slowdown, according to the CBI/GVA Grimley Corporate Real Estate Survey conducted in October and November 2007. The twice-yearly survey revealed that 22% of corporates expect to reduce their property holdings.
The balance of 21% is just below the 22% that occupiers increased their property holdings by in the past six months.
Firms in the extraction and manufacturing sector reduced their holdings in the second half of 2007 and expect this trend to continue in the next six months. Banking, finance and insurance firms also expect to cut back slightly on property in the first half of 2008.
Howard Cooke of GVA Grimley said the expected cutbacks in the finance and manufacturing sectors were related to the fallout from the credit crunch and the surplus space these sectors carry. He added, however, that the survey does not confirm speculation about a crisis in commercial property.
