06-24-2016, 05:26 PM
London office-property values may fall by as much as 20 per cent within three years of the country leaving the European Union as businesses relocate and the economy stagnates, according to Green Street Advisors LLC.
Shares of UK developers tumbled as the pound plunged to the lowest since 1985 following Britain's vote to quit the EU after more than four decades. Prime Minister David Cameron's announcement that he was stepping down fueled concern that political turmoil will further roil markets.
Investment in UK commercial real estate dropped by half in the run-up to yesterday's referendum as potential buyers shunned deals. That was on concern that leaving the EU would encourage businesses to relocate abroad, leading to higher vacancy rates and lower prices in the U.K.
Shares of UK developers tumbled as the pound plunged to the lowest since 1985 following Britain's vote to quit the EU after more than four decades. Prime Minister David Cameron's announcement that he was stepping down fueled concern that political turmoil will further roil markets.
Investment in UK commercial real estate dropped by half in the run-up to yesterday's referendum as potential buyers shunned deals. That was on concern that leaving the EU would encourage businesses to relocate abroad, leading to higher vacancy rates and lower prices in the U.K.