The chief executive said London’s commercial property markets would “weaken during this period of uncertainty” although he remained positive on the capital’s long-term prospects.
“We’ve just got to remember that cities like London have traded for the vast majority of their existence outside the EU and have done very well. I’m sure the magnetism and power of the city will continue after we’ve sorted out the arrangement. Long term I remain as optimistic over the city as I ever have, but the interregnum will be somewhat more volatile.”
GPE, however, still has 11 tenants on the point of taking up space and has signed up one in the days after the vote.
Courtauld added that most companies were still hunting for space in an undersupplied London market while borrowing levels in the industry were much lower than in the wake of the 2008 financial crisis, meaning lower prospects of forced selling.
But he warned: “There is a complete political vacuum and to say that is unhelpful is probably a serious understatement. I think we need to get political stability and then start fighting our corner.”
That call was echoed by the London Chamber of Commerce and Industry, which urgently called for a Brexit battle plan from ministers, with confidence among the capital’s firms at a record low in its latest quarterly poll of businesses. Smaller firms are more negative about prospects than bigger firms, the findings revealed.
Chief executive Colin Stanbridge said: “Given the result of the referendum and the lack of clear leadership within political parties, it is even more important that the Government moves quickly to maintain confidence and minimise economic insecurity.”
The LCCI put forward four demands to Mayor Sadiq Khan and the Government. These were leading more trade missions on behalf of the capital, encouraging more small housebuilders, easing the burden of business rate rises and a decision on airport expansion.
