It is well-known that the UK economy is heavily reliant on SMEs to support economic growth and the British currency.
Now, almost three-quarters of SMEs in the country are seeking office lease terms of less than three years. Indeed, shorter leases have become increasingly popular during 2017, and are now up 17% compared to the beginning of the year.
Eugene O’Sullivan, Managing Director at Morgan Pryce and leading Chartered Surveyor in London, explains; “Pre-Brexit, SMEs were strongly in favour of longer, five- to ten-year lease lengths. Post-Brexit, landlords have had to rethink their lease structures so as to not push tenants away from traditional leasing towards serviced office providers, such as WeWork and The Office Group”.
A survey conducted by serviced office provider Citibase found that 74% of SMEs are now seeking sub-three-year leases, compared to 57% in Q1. This is even higher in the North East, with 90% of firms seeking a shorter lease.
In the same survey, 54% of SMEs said they would welcome a second referendum on whether or not to accept a EU exit deal. More than 1,100 SMEs responded to the survey.
This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.
