CBI: Firms cut property holdings
May 01 2009
Businesses have reduced their property holdings over the last six months and expect this trend to accelerate.
The latest Confederation of British Industry (CBI)/GVA Grimley Corporate Real Estate Survey reveals that 26 per cent of firms have decreased the amount of space they occupy, compared to 20 per cent in the previous six months.
In addition, the survey finds that more companies expect the amount of property they hold to fall further in the next six months, citing reasons such as cuts in headcount and decreasing output.
Howard Cooke, director at property consultants GVA Grimley, comments: 'Surplus property is on the increase, as is vacant space, and this can only exacerbate firms' costs now empty property rate relief has reduced.'
The survey also reveals that 52 per cent of companies have surplus property, with 97 per cent of these having empty space which they pay full business rates on.
Earlier this month, the Royal Institution of Chartered Surveyors claimed that empty property rates will result in future instability in the commercial property market and lead to a shortage of supply as businesses demolish buildings to avoid the tax.
The latest Confederation of British Industry (CBI)/GVA Grimley Corporate Real Estate Survey reveals that 26 per cent of firms have decreased the amount of space they occupy, compared to 20 per cent in the previous six months.
In addition, the survey finds that more companies expect the amount of property they hold to fall further in the next six months, citing reasons such as cuts in headcount and decreasing output.
Howard Cooke, director at property consultants GVA Grimley, comments: 'Surplus property is on the increase, as is vacant space, and this can only exacerbate firms' costs now empty property rate relief has reduced.'
The survey also reveals that 52 per cent of companies have surplus property, with 97 per cent of these having empty space which they pay full business rates on.
Earlier this month, the Royal Institution of Chartered Surveyors claimed that empty property rates will result in future instability in the commercial property market and lead to a shortage of supply as businesses demolish buildings to avoid the tax.
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