Expansion plans set to boost commercial property sector

Expansion plans set to boost commercial property sector in 2015

The commercial property sector is set to benefit from the expansion plans of UK businesses in 2015 after a new UK-wide survey found that half of finance directors say their organisations plan to move, expand or upgrade their premises in 2015.

The FD Recruit 2015 Forecast found that 52% of finance directors are projecting an increase in their budgets relating to offices and commercial property over the coming 12 months. Industries such as lettings, construction and the legal sector are set to be the biggest winners.

The survey found that finance directors believe 2015 will be strong enough to put into action latent expansion plans which may not have been affordable over the last five years, as well as new plans which are emerging with projections of strong growth.

This will include moving to larger premises, covering both rentals and purchases, extending existing premises and opening new premises in new areas of the country.

The statistics were revealed following a wide-ranging UK study conducted by FD Recruit, which specialises in the recruitment and career development of finance directors. As part of its service, FD Recruit surveys hundreds of industry professionals about hot industry topics.

Heading into 2015, FD Recruit quizzed its finance directors about spending projections for the coming year, finding that 80% of finance directors are either ‘optimistic’ or ‘very optimistic’ about 2015.

Overall, the FD Recruit 2015 Forecast found that about a quarter (26%) of finance directors reported that business in 2014 had exceeded their expectations; 58% are expecting growth in 2015, with a further 18% were preparing for ‘significant’ growth.

Phil Scott, director of FD Recruit, said: “The survey shows that UK businesses are optimistic heading into 2015, and the property sector looks set to be one of the biggest winners.

“The demand for new locations will come from both businesses that need to expand to cope with future demand, as well as those which have already outgrown their premises but have been financially unwilling or unable to act before now.

“The economy has been tough for a number of years, but what the 2015 Forecast reveals is that there is renewed confidence of an upturn in business and finance directors are planning to spend more in 2015.”

In preparation for this success, finance directors are predicting to increase their spend in a number of areas:

Recruitment and staff
45% of respondents expect to increase their spend
30% expect to match the previous year’s spend

Property, offices and buildings
52% of respondents expect to increase their spend
28% expect to match the previous year’s spend

Equipment and machinery
64% of respondents expect to increase their spend
22% expect to match the previous year’s spend

IT and technology
57% of respondents expect to increase their spend
30% expect to match the previous year’s spend

Marketing
45% of respondents expect to increase their spend
23% expect to match the previous year’s spend