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The London office market – What will 2018 bring?


There is no doubt that Brexit has had a tremendous impact on the economic scene in London, but with 2017 rolling on, it has become quite obvious that the London commercial property market has the juice to push onward. Now, that doesn’t mean that 2017 was a completely uniform omen of positivity and hope, as it has had its ups and downs, especially in the early stages, and especially downs.  Brexit managed to create some setbacks for the office market as a whole.

It is important to acknowledge that the political decisions that are made will always have some form of impact over the market. Depending on what’s going on politically, you can expect to see investors swarming or dispersing incredibly fast, towards or from different points of interest that reside within London’s commercial spectrum.

The bottom line however is that businesses will always need commercial space and while the political moves going on at any given moment might have something to do with how the market fluctuates overall, in the end you will still find investors happy to invest. 

It’s also worth noting that the prospect of a weaker pound will also lure in investors. It certainly plays a big role in how everything comes together, and it’s expected to continue in 2018 as well. It will be interesting to see how 2018’s pound handles itself and whether its state, good or bad, will have a positive impact on the market, specifically the commercial property market. 

With that in mind, let’s focus our attention on sectors already affected by the political turmoil caused by Brexit, and by Brexit itself. For them, the thought of expanding or relocating is something that just can’t happen right now. While it might be a long term goal, the intricacies of the current state of both the market and London’s politics make it an unreliable decision. That is why we’ll probably not see a lot of relocating or expanding happening for those that have much more to win by bolstering their foothold and hanging on to their patch of the market until the storm settles down.

How is Brexit supposed to affect London’s market?

For some, it might seem rather odd that the two would have something to do with each other. However, there’s a strong connection through the fact that the top dog businesses that have set up shop in London were predicted to ditch it in favor of other cities. Once London would no longer be an EU city, these top companies and investors were thought to just leave for other cities that would grant them access to the market and opportunities made possible by the EU.

Despite predictions however, that’s not really what’s going on and it’s safe to assume that in 2018, the London office market will be just fine.


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