Demand for commercial property in the UK will weaken in the coming weeks and months after the UK opted to leave the European Union.
Various experts, including Chris Ireland, chief executive officer of JLL UK, expect activity levels in the commercial market to cool as the UK negotiates the terms of an exit with the EU.
He said: “In the short term we may see a weakening in occupier demand. The impact on rents may be limited by tight supply, but activity will be adversely hit while initial uncertainty about direction and timing continues.
“Investor sentiment may also remain subdued in the short to medium term. For property markets, the initial correction may be most severe but should be followed by an upturn as opportunities re-emerge in UK core markets and benefits of weak sterling are recognised. Sentiment and relative pricing will be key.
“Much will depend on the speed of negotiation, the wider political picture and whether a clear direction of travel and timetable for an EU exit is established early on.”