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News Release

London

Jones Lang LaSalle’s reaction to public sector job losses announced in today's Spending Review 


London, 20th October 2010 - In today’s Comprehensive Spending Review, the Chancellor of the Exchequer, George Osborne, announced that 490,000 public sector job losses will be made over the next four years.

Chris Hiatt, Chairman of Jones Lang LaSalle’s National  Offices team, said: "Public sector job losses will lead to increased property consolidation and more office space coming onto the market which will not help the majority of regional office markets which are currently oversupplied with all grades of office space. We anticipate that the majority of space to come back onto the market will however be poorer quality which could however create opportunities for new uses or refurbishing Grade C and Grade B space; admittedly that's a small silver lining.

"In 2009 the public and administration sector was responsible for 12% of office take-up in the Western Corridor, 26% in Leeds, 33% in Manchester and 58% in Birmingham. Whilst last year may have been higher than average the regional markets have enjoyed considerable public sector take-up.  Other sectors, for instance outsourcing contractors, such as IT companies, are reliant on public sector procurement and a reduction in this will have a much wider and negative impact on all office markets across UK."

Notes to Editors
In H1 2010 take-up reliance from the public sector was 16% in the Western Corridor and Leeds, 12% in Manchester and 18% in Birmingham.