SMBs may increase property investment amid expected expansion

Friday, March 26, 2010

There is a current wave of positivism within the SMB sector which could see the need for large business property premises.

By Ashley Brunskill

Small and medium-sized businesses (SMBs) may need to increase their property investment budgets if one entrepreneur is to be believed.

Julie Meyer said SMBs are integral to securing the economic recovery of the UK, with more individuals moving to smaller firms, while larger companies have been making people redundant.

With optimism abound for the success of the SMB sector, companies may need to expand their offices and invest in more commercial property.

Indeed, a recent Barclays study found that SMBs expect to create two million jobs over the next 12 months.

Southampton is the area which has the highest predicted growth. Small firms there believe they will see 49 per cent annual growth.

Commenting on such optimism, Ms Meyer said: "New company creation and high-growth [SMBs] are really how we are going to pull ourselves out of the economic slump and into economy growth."

However, she added that it is those firms which exploit innovative technologies that will see the greatest success.

Source: ask-re The Property People LLP