Corporate occupiers ‘view property as an asset’

Nine out of ten corporate occupiers across the UK regard their property portfolio as an asset that adds value to their business, according to research by GVA Grimley and the CBI. The survey found 51% of private companies across all sectors of the economy and all UK regions that were surveyed consider property as principally an asset. Added to this is 39% of respondents who view property as an asset and liability, with only 10% of respondents viewing property solely as a liability. This result stands, despite the perception that firms increasingly view commercial property as a liability. However pressure on property costs remain, with 37% responding that pressure to reduce property costs had increased with only 3% reporting that it had lessened. The survey also found that 60% of decision-makers were unaware of whether they complied with accounting standards dealing with surplus property and leases. Despite 40% of firms saying they comply, only about two-thirds properly account for surplus property liabilities which exceed £9bn for FTSE 100 companies alone. The survey also covered lease flexibility. Some 62% of firms say they would terminate up to a quarter of the space they lease and 9% say they would wish to terminate more than a quarter of the space they occupy. Under a third said that they would not terminate any of their leases if it were an option.