Fraser CRE - Fraser Corporate Real Estate

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FTSE 100 is carrying a £103 billion lease obligation burden

We have recently published the fifth annual FraserCRE Corporate Occupiers' Report. This latest report is the result of in-depth analysis of the FTSE 100 company accounts and responses from over a 100 leading Corporate Real Estate Managers.

In undertaking this study, we found that the operational lease commitments for the FTSE 100 companies amount to £103 billion. For UK business as a whole, this figure could be approaching £150 billion.

The problem for corporate occupiers is that, in the future, operational lease obligations may have to be reported as a liability. If this happens, property problems won't just be a business headache, they will be a major drain on corporate profitability. The FTSE 100 figure of £103 billion represents 91% of PBIT.

There has, therefore, never been a more pressing time for corporate occupiers to resolve property issues, be it surplus property or lease liabilities. Creative and effective measures have to be taken now to avoid property-related problems hitting the bottom line in the years ahead.

Click here to download a full copy of the report. Alternatively, please contact Cheryl Warren if you would like to receive a copy of the report by post.