As 37% higher” (Savills, 2017). Meaning that, -unless

As mentioned beforehand, Brexit’s impact can be
noticed in the off-shoring office market as well from the UK to the EU due to
more attractive property market and business offers, with the loss of financial
services passports will lead to many jobs being put at risk, and due to the EU
banking licenses.

However, although it might seem like a tempting option
for UK organisations to move to the EU markets, Eurostat’s own data shows that “average
employers’ costs in Germany are 25% higher than in the UK. In France, they are
37% higher” (Savills, 2017). Meaning that,
-unless the operating costs in the UK rise drastically post Brexit-, large
scales job moves from the UK to the EU are not that much of a good strategy.

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Even the evolution and growth of online shopping’s impact on commercial property value is unarguable
as it is highlighting the importance of store networking as a part of retailing
strategies, and that is noticeable in the number of online retailers who are
looking or have already acquired physical stores, and the number of traditional
retailers trying to adapt.

With online retail becoming more and more popular, deterioration in the British High Street
concept is noticeable, as shops are closing, sales prices are down, and fewer
customers are visiting. (Business Insider Inc., 2017)

According to (Business Insider Inc., 2017), High streets will
try to adjust instead of disappearing. How? We can already see some new innovative
changes such as coffee shops opening in super markets, DJs in clothing stores
such as Topshop store, Diesel store in Carnaby Street, Tommy Hilfiger on Regent
Street, etc. But despite all the effort, many of those units will either shut,
remain vacant, or in best case scenario, will lead to shrinkage of size in High Streets.

Development legislation
of planning and construction change is one of the most influencing factors
on the variations in the property market value, and for commercial use in
particular, as many laws, e.g. the ones protecting listed buildings and
conservation areas (Planning Listed Buildings
and Conservation Areas Act, 1990), will make a big
challenge of adapting old buildings to nowadays needs. Consequently we can see new
emerging issues like Building Obsolescence,
an issue that challenges office market performance in its own ways. Durability and
longevity are two of the main characteristics of good development, and building
obsolescence is measured in terms of the real decrease in value, causing
depreciation of office buildings in the investment property market.

As occupiers expectations get higher with ongoing
changing technological, economic, and aesthetic conditions, commercial
properties, -in particular office buildings- that have are unable to cope with
these increasing expectations are suffering from reduced utility and
obsolescence, and consequently, leading to an increase in costs for occupiers
in operational property, as office building utility will start declining. (Pinder and Wilkinson, 2000)