Birmingham Bounces Back
After falling to an 11 month low in January workstation costs surged in February
Providing a much needed boost to the cityΓÇÖs office providers, the price per workstation (equating to approximately 70 sq ft of office space) increased by ┬ú160.00 during February resulting in an average monthly cost of ┬ú378.00 per workstation.
While this upswing in price will benefit BirminghamΓÇÖs serviced office providers, who along with providers from throughout the West Midlands experienced a 21% decrease in workstation costs during 2009, it is also a positive sign of the shape and size of business activity taking place within the region.
With confidence levels on the rise, more and more businesses have begun searching for flexible and conventional office space, leading to a squeeze on supply levels within the city. It is this tipping balance of supply and demand that has undoubtedly helped to drive the increase witnessed in workstation costs. These higher prices may also point toward businesses returning to higher grade accommodation, often abandoned as an unnecessary luxury during the onslaught of recession.
Workstation prices throughout the UK are positioned to record their first quarterly increase since 2008 according to early indications, with spikes such as those seen in Birmingham continuing to make their impact felt across the majority of regions.
Whether of not these ΓÇ£spikesΓÇ¥ will lead to a sustained recovery in workstation prices in the early part of 2010 is yet to be seen, but providers will certainly be hoping that the positive responses seen in Birmingham during February is the first step toward a more prosperous 2010.
A full quarterly review of the serviced office market in the West Midlands, including Birmingham, will be available from officebroker.com in Mid-April. Reports covering Q4 09 are available now and all reports are availble by visiting the Stats & Facts section of our website.