The Leader Magazine

SEP 2016

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28 SEPTEMBER 2016 F E A T U R E A R T I C L E How will 'Brexit' affect corporate real estate? T he political earthquake known as Brexit he political earthquake known as Brexit has rocked the United Kingdom, and the has rocked the United Kingdom, and the nation – not to mention the rest of Europe – is still feeling the aftershocks. They won't go away anytime soon. away anytime soon. Indeed, the 23 June, 2016, referendum in which British voters elected to leave the European Union (EU) triggered a veritable tsunami of political turmoil. Theresa May's tsunami of political turmoil. Theresa May's recent appointment as the new British prime minister capped weeks of uncertainty as to who minister capped weeks of uncertainty as to who would lead the UK following David Cameron's would lead the UK following David Cameron's announcement shortly after the vote that he announcement shortly after the vote that he intended to resign. The voters have had their say, but the UK government must take the next step, which is to start the formal process of exiting the EU to start the formal process of exiting the EU by invoking Article 50 of the Treaty of Lisbon. by invoking Article 50 of the Treaty of Lisbon. by invoking Article 50 of the Treaty of Lisbon. by invoking Article 50 of the Treaty of Lisbon. That begins a two-year period to negotiate the That begins a two-year period to negotiate the details of withdrawal, which will determine the details of withdrawal, which will determine the UK's future trading relationship with the EU. UK's future trading relationship with the EU. The specifics of that trading relationship – the degree of integration with the EU – figure to have significant business-strategy implications have significant business-strategy implications have significant business-strategy implications for most companies with UK operations. It'll take at least two years to sort out, if It'll take at least two years to sort out, if It'll take at least two years to sort out, if not longer. For now, there are probably more questions than answers. What impact will questions than answers. What impact will Brexit have on companies' European business Brexit have on companies' European business strategy? What impact will it have on corporate strategy? What impact will it have on corporate strategy? What impact will it have on corporate real estate (CRE) portfolios? What changes does real estate (CRE) portfolios? What changes does real estate (CRE) portfolios? What changes does Brexit hold for London, the financial capital of Brexit hold for London, the financial capital of Europe? Nobody knows for certain. For now, here are viewpoints from three corporate real estate professionals in Europe. by Tim Venable

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