Effects of Brexit on Offices and Retail Property in London essay

Effectsof Brexit on Offices and Retail Property in London

Effectsof Brexit on Offices and Retail Property in London

Thepotential exit of Britain from the European Union (EU) could causeserious impacts on property investment in the UK. The proposal of thepotential withdrawal is still at referendum stage yet it has showndirect impact on the office and retail property markets. For example,one of the direct impacts is that international organizations mayreconsider investing in UK offices and shops. According to Dhingra(2016), the report released by Royal Institution of Charted Surveys(RICS) indicate that the demand for the offices as well as retailproperties has decreased steadily after the confirmation of thereferendum. Grant (2016) explains that some firms which are operatingin the UK may even consider relocating to other major global citiessuch as Frankfurt, Paris and Dublin. The drop in the demand for theoffices and rental property suggest that subsequent exit of Britainfrom the EU will have negative impacts on real estate investment. Asthe report has shown, the exit will lower the markets for offices andretail properties in the UK.

Someretailers are afraid of the problems and uncertainties that arelikely to arise as a result of the withdrawal. Sutherland (2016)observes that such fear may also be contributed by high levels ofbiases which may be perceived on the side of retailers by thecustomers. For example, if Brexit succeeds, the retailers may beperceived to have taken sides with those opposing the move. This maydecrease their performance and lower their revenues. For thesereasons, if the Britain succeeds in withdrawing from EU, theretailers may move to mainland Europe. Therefore, it is easy toobserve that that Brexit will lower occupancy of offices and retailproperty in the UK.


Dhingra,S., Huang, H., Ottaviano, G., Pessoa, J. P., Sampson, T., &amp VanReenen, J. (2016). The Costs and Benefits of Leaving the EU: TradeEffects.

Grant,W. (2016). The challenges facing UK farmers fromBrexit.EuroChoices,&nbsp15(2),11-16.

Sutherland,E. (2016). A Short Note on Telecommunications Issues Related toBrexit.&nbspAvailable at SSRN 2766077.