The team at McKay Securities believes its focus on the South East office market could be a boon if occupiers opt to move from London in the wake of the coronavirus pandemic.
Decisions on new office lettings are likely to be delayed while tenants review their working practices and space needs, the company said in its full-year results announcement.
“If occupiers decide to decentralise in order to reduce exposure to congested public transport, the regional markets of the South East can provide alternative business locations at significantly lower occupational costs,” the company said. “Furthermore, the anticipated requirement for more space per employee as a consequence of Covid-19 should help support the office sector resilience.”
McKay posted a 0.9% rise in EPA NAV per share during the year to 31 March, to 329p. Pretax profit of £9.49m was down from £13.19m a year ago.
Chief executive Simon Perkins said: “We expect to see an acceleration of many of the trends we have positioned the portfolio to respond to over recent years, such as flexible lease structure, competitive rents, smart technology, strong sustainability credentials and high standards of customer service.
“If factors such as lower occupational costs, flexible transport options and generous car parking result in further decentralisation post Covid-19, we are well placed to take advantage.”
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