Business owners currently looking for leasehold office space have a tricky decision on their hands. Do they continue to look at longer term leases or move to a more flexible solution? Some of our clients have already decided it’s not worth waiting any longer to see what plays out and have taken workspace. Many others are now seriously considering this type of space due to its flexibility. We have documented in a previous blog about the huge rise in serviced office space across the UK with the industry set to be worth up to 126billion in the next 10 years.

It’s no surprise that flexible workspaces are popping up everywhere, due to their affordability, flexibility, networking ability and locations.  It’s fair to say there is no worse time for businesses to commit to long term office leases. No one can predict the impact of Brexit on property values across the country, so purchasing or leasing office space is risky business. As we have experienced in past recessions we have to maintain a lean business plan making as much profit as possible and riding the wave.  Tying businesses into 5 – 10 year leasing deals makes no commercial sense at all.

Experts are predicting the UK to develop relationships globally, outside of the EU when we finally leave– will such relationships require businesses to adapt their global footprint?

It’s clear we all need to think more flexibly about location, accessibility, business growth, overheads and workspace requirements. The main reason for the rise of co-working spaces and serviced offices is because there is less commitment involved.  You can often break a contract with 4 week’s notice without any penalties.  The traditional model is restricting business growth, strategy and has been called old fashioned. Along with increased lease rates this solution is no longer attractive.

Along with the 9-5 model, the hours people are working and level of freedom and flexibility needed to keep people motivated, balance work and life means serviced offices are a great support mechanism for this. The latest generation of millennials see flexible working options as a must-have. It seems the Brexit vote is the catalyst to further speed this process.

The current climate makes strategic business planning difficult. Having the choice and ability to flex workspace is key as businesses move with the times.  Often scaling up and down on a regular basis. Forward-thinking businesses want to position themselves to flexibly ride out the current storm and see light at the end of the tunnel when the economy is more stable

 “While it seems that no one knows the long term implications of Brexit it’s fair to say that the uncertainty and the lack of a clear plan (or at least the communication of one) has caused a fair bit of chaos. Add to the mix, ever evolving technologies and ‘disruptive’ companies, it’s becoming increasingly more difficult for companies to plan for the next 5 to 10 years which used to be the norm. Companies, now more than ever, need to be agile and able to adapt quickly to market conditions, trends and new technologies. A flexible workspace solution is just one of the ways that companies can mitigate risk in an uncertain time. It will allow them to adapt quickly to evolving market conditions, whether that be upscaling or downscaling. Occupancy rates in serviced and managed offices have been increasing faster post referendum so the evidence suggests companies are taking a more flexible approach to their workspace needs pre Brexit” said Lee Grodent, MD Loc8 Commercial.

If you are looking for office space pre Brexit and want to discuss how a flexible office solution could be the ideal solution then please do give our consultants a call on 020 3031 8563.

The post A flexible approach pre Brexit appeared first on Loc8 Commercial Blog.

With the referendum looming on 23^rd June, there have been many polls asking UK voters how they will vote when faced with their ballot paper in the booth on the big day. But what do UK business owners think?

Loc8 Commercial invited 500 UK business owners to answer five simple questions on the Brexit argument. The results show that among this group, there is deadlock, with 46% in favour of a British exit from the EU and 46% wanting to stay and just 8% undecided either way.

Will the UK be Better Off Out of the EU?

When asked “would the UK economy be better off if the country left the EU?” businesses responded by saying yes with just over 50% compared to the 43% that said no.

Our survey had some mixed results which could support the theory that many people are simply not sure what impact Brexit will have on the wider economy. For example, 38% of businesses thought a recession would be more likely despite more than 50% agreeing Brexit would be good for the UK economy.

The impact of Brexit on Jobs and Wages 

Brexit campaigners have said that there could be some short term growth issues but the long term forecast would be generally positive. Ian Duncan Smith said he believes the downward impact on wage growth is down to European migration, something that has been mentioned throughout the debate. But what is not clear is the impact of wage inflation on UK jobs if the country votes to leave, especially as productivity is not rising at the same rate as other European countries according to the Office of National Statistics.

Our survey found that just under 40% of UK businesses think there would be job losses if the UK voted to leave, with 31% feeling confident there would not be any immediate job losses. Of all our survey questions, this was one of the highest with businesses not sure which way they would vote.

The immediate impact of Brexit on the UK Economy

This week the head of the World Trade Organisation, Roberto Azevêdo, has said in an interview with the Financial Times that the UK would find negotiations for trade deals slow and time consuming following an exit from the EU. As a result there would be an impact on the UK economy which could lead to a recession in the short term. Our survey supports the views of Mr Azevêdo with 38% believing a recession was likely. However, there is an equal number between those who are unsure and those that believe a recession is unlikely.

What are the Big issues worrying Businesses about EU Membership?

Both sides of the debate have argued that there is either too much or very little EU red tape. These confusing arguments haven’t helped the debate. Last month The Treasury cited the LSE Centre for Economic Performance report which stated, “it is unclear whether there are substantial regulatory benefits from Brexit”. Businesses that took part in our survey however, think red tape is the biggest issue affecting their ability to do business easily. In addition, the regularity of new EU regulations is the second biggest issue with 35% citing this as a concern, well ahead of immigration, which had a zero score from the businesses that took part.

The Big Day

With the big day looming  in under four weeks, many businesses are still unclear how to vote partly due to the confusion and the largely negative campaigning from both sides of the debate. If you are still unsure, we have put together several useful links below to help give you an impartial view about the facts.

Brexit Resources

Here are some useful links that help to explain the referendum issues.

Open Europe – A full report on the affects of Brexit and the types of membership of the EU.

BBC News – A summary of the issues from the BBC news team.

Carter Jonas –  A report on the impact of Brexit on UK property.

The Week – A general overview of the facts around the referendum.

The post Is Brexit going to be good for UK businesses? appeared first on Loc8 Commercial Blog.

With confusion growing, a large proportion of the electorate have yet to be swayed either way, something that is blamed on the negative campaigns about the benefits to business and the wider UK economy of EU membership. However, many polls are suggesting the vote could be swayed in favour of Brexit by the number of over 65’s who turn out to vote.

According to YouGov’s Stephan Shakespeare in an article published in The Times, his company’s online polls have corrected for this indecision and now represent a true snapshot of public opinion. He said “the deep human drive to avoid risk is likely to become increasingly powerful as we get closer to a real decision which cannot easily be changed once it is made.” The result, he says, is that “whatever the state of the polls today, it is impossible right now to predict the level of change in people’s views yet to come”.

This is by far one of the most important votes in recent memory, along with the Scottish Referendum in 2014, as the long term implications on the UK economy could either be positive or negative for future generations.

So what are the pro’s and con’s for UK businesses? We’ve looked at some of the main arguments on both sides.

Here are the pros:

• UK businesses and especially SME’s often see the EU trade regulations as unnecessary red tape especially in sectors like food and consumer goods. Leaving the EU would allow the UK Government to change these regulations, making it easier for businesses to sell their goods.
• The UK contributed over £13bn last year but received more than £4bn in support. By not paying £8bn to the EU it is believed that this saving of around 180 Euros per person in the UK would raise the prospect of tax reductions that could directly impact businesses regardless of size.
• Many believe the UK could have the same benefits as Iceland who are members of the European Economic Area (but not the EU) which comes without the confines of the red tape that is part of full membership.

And the cons:

• Some parts of the UK economy like farming could be hit hardest because of the loss of EU farming subsidies.
• There are several free grade agreements that the UK benefits from through its EU membership. Brexit would mean the country would have to negotiate agreements with these areas like Latin America for example.
• UK goods and services could be more expensive because of tariff changes that would be inevitable for businesses that trade in European countries outside the EU.
• The lack of import taxes within the EU helps UK businesses compete equally with other businesses across the continent. If the UK left there could be increased uncertainty which could have a negative impact on business growth in the future.

These pros and cons are responsible for so much uncertainty among UK businesses and voters, with many saying the campaigns for both sides of the European argument are not making it clear enough to make a decision on the big day.

The impact on the flexible workspace sector would be dependent on the challenges faced by SME’s and the large businesses that use serviced office space, managed space and flexible solutions. The sector has seen exceptional growth over the last few years with a growing number of workspace providers and increasing occupancy levels in areas that struggled during the down turn like Bristol, Manchester and the North East.

TAKE THE LOC8 COMMERCIAL SURVEY

To gauge the potential challenges faced by the growing sector we have put together a short survey to seek opinion from businesses across the UK. It takes under a minute to complete and we will publish the results from 23rd May.

CLICK TO TAKE THE SURVEY

About the Author

Stephen Moore is a writer and marketing consultant supporting businesses in the commercial property sector. Find out more about Stephen at Google+.

The post Will Brexit Affect your Business? appeared first on Loc8 Commercial Blog.

Here we ask UK business owners if they think Brexit will be good or bad for their businesses. We are particularly keen to hear the views of serviced office providers, flexible workspace providers and businesses who use these services.

TAKE THE SURVEY IN UNDER A MINUTE

Create your own user feedback survey

Thank you for your time. We will be publishing the results of the survey on 16th May on our social media channels and here on the blog.

The post Is Brexit Good For UK Businesses? Take the Survey appeared first on Loc8 Commercial Blog.