CFO Survey: Evidence Of Corporate Expansion And Future Growth

Deloitte's latest CFO Survey offers compelling evidence of corporate expansion and, importantly, future employment growth. This will play a crucial role in the next stage of the property market cycle as businesses expand their workforces and their commercial property requirements.

Over a third of respondents state that introducing new products or services or entering into new markets will be a strong priority over the next 12 months, while appetite for risk is at the highest level since the survey began in 2007.

The results back up our view that the drivers of property performance are shifting from capital growth, fuelled in recent years by strong yield compression, towards a greater contribution from rental growth. Indeed, we are already recording rising office rents in a number of the locations that we monitor, and these positive messages from UK corporates raise the likelihood that this rental growth will spread to other markets across the UK.

The...