Survey Predicts Office Sector will Suffer from Government Cuts
The office sector is facing tough challenges following Government cuts
Following a Reorb member survey, in which participants are all part of the commercial property industry, 51.8% of participants believed that the office sector would be hardest hit in the wake of the Government’s spending cuts.
In the coalition Government’s attempt to bring down the UK’s towering deficit, Chancellor George Osborne has unveiled the biggest UK spending cuts for decades, with welfare, councils and police budgets all being hit.
The move is planned to cut ┬ú81bn from public spending over the next four years.
27.1% of those surveyed by Reorb felt that the high street would receive the biggest impact, and just 5.9% thought that the industrial market would suffer the worst effect.
Commenting on the results, Reorb’s Tom Inglis said:
“It is clear that there is feeling that the public spending cuts will have a disproportionate impact on the office market nationwide.
“Whilst this will probably lead to a rise in office availability as the Government reduces its own occupancy levels, there seems to be a consensus that this will be of a poorer quality and that the lack of new and good quality space will see values remain stable at the top end of the market.”
Commenting on the outcome of the survey, Michael Irving of Irving Associates in London believes that the occupational market “Is likely to become tiered with better locations and properties remaining lettable, and secondary accommodation likely to be harder to let.”
officebroker.com is currently rolling out its latest round of Serviced Office Reviews, which focus on the quarterly and year-on-year performance of serviced offices in all UK regions.
Q3 2010 is currently in the process of being published, and all the latest statistics can be found online at officebroker.com’s Stats & Facts section.