NORTH-WEST firms are cutting their property holdings at a slower rate than the rest of the UK despite the recession, a new study claims.
The latest CBI/GVA Grimley Corporate Real Estate Survey shows that, since the turn of the year, companies across the UK have been reducing the amount of commercial space they own.
But, while the nationwide decline is set to continue, the GVA study claims NW firms are now ready to start expanding their portfolios again.
The twice-yearly survey, conducted between August 26 and September 16, shows that, while 12% of north-west firms increased their occupied space in the last six months, 14% reduced it, giving a balance of -2%.
This was slightly less negative than the expected balance of -13% and going forward, for the next six months, occupiers in the North-West are looking to expand at +13%, against the UK figure of -15%.
Retail, extraction and utilities and engineering and construction recorded the most significant property expansion in the NW over the past six months, while manufacturing and financial services were both in contraction mode in terms of property.
The sharpest decline in the next six months is expected to once again be in the financial services sector.
Mark Rawstron, senior regional director at GVA Grimley, said: “Firms throughout the whole of the UK have continued to reduce property holdings in the past six months, but it is encouraging to see that this is due to change significantly in the North West in the coming months.
“Yet again, most firms feel some impact from the recession, with slightly more blaming tighter credit conditions than six months ago.”
According to the survey’s figures, there has been a significant change in attitude in the North-West over the last six months, from one of reducing output, to an expansion mode.
But this is not mirrored in employment levels, where the survey predicts continued reduction in people employed in the North-West.
Costs remain a key consideration for companies when looking at which building to occupy, the study shows.
