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Over the first three quarters of 2009, officebroker.com statistics for initial license lengths shows a steady quarter-on-quarter decline.

As a whole, the average length of term signed by new occupiers over the first three quarters is down -22% when compared with the same period last year. In terms of quarterly figures, Q1 2009 was down -14% compared to the same quarter in 2008, followed by a drop of -23% in Q2 and -33% in Q3.

This suggests that the recession has taken its toll on the market. Despite a recent uplift in UK business confidence, these figures show that many new occupiers are reluctant to sign for long-term agreements.

While economic difficulties and a possible lack of business confidence could contribute to this trend, another potential cause could be an increase in start-up ventures.

Despite the unstable economy, many entrepreneurs are taking advantage of reduced start-up costs and are finding niche opportunities in various markets.

This trend may be leading to an increase in smaller companies who are using caution when signing for new office space - and as a result are choosing short-term agreements by way of testing both their venture, and their ability to succeed in a difficult economy.

For more details about this investigation, visit our report: Recession causes UK businesses to seek short-term office space.

Published by Jo on Monday, 02 November 2009 at 9:28 AM