A Real Estate partner at Irwin Mitchell is predicting a significant increase in demand for short-term property leases as uncertainty amongst businesses builds on the future of trade agreements following Brexit.
John Flathers, partner and Head of Real Estate at Irwin Mitchell in Leeds, says that many organisations are already stockpiling equipment and spare parts for their business.
“There is a great deal of uncertainty for business caused by Brexit and I think it is inevitable that they will attempt to manage the process as best they can. One way that they will do this is by stockpiling vital equipment for their businesses,” said John Flathers.
He added: “I recently attended a CBI Council meeting and there were businesses that were already doing this.
“Many of the businesses that are looking at doing this, or already doing it, are not just food retailers or manufacturers that are worried about a ‘no deal Brexit’ and rely on just in time delivery, they are also companies such as logistics firms that need parts that are currently produced overseas to maintain their fleet of vehicles.
“Property wise, this might mean short term leases of industrial and warehousing space. This can provide a challenge for some because the availability is not always in the best location and there is a real possibility that a shortage of supply could force prices up.”
Irwin Mitchell has recently published its UK Powerhouse report which analysed the impact of Brexit on the UK economy in the three months after the date when the UK is scheduled to leave the EU.
