Demand Vs Supply: Office Space
Centre for Cites have reported that a lack of office space in the UKΓÇÖs fastest growing towns and cities could have a negative impact on the countryΓÇÖs growth.
According to their report, there is a ΓÇ£striking mismatchΓÇ¥ between the demand for office space and the location of new office developments. Of the UKΓÇÖs 10 largest cities only London and Bristol made the list for the top 10 of ΓÇ£BritainΓÇÖs Buoyant CitiesΓÇ¥. Cambridge, Crawley, Reading and Aldershot all made the list for their strong economic performance, yet also featured poorly for average growth in office floor space. The opposite was witnessed in Blackburn and Bolton where there has been a rise in the amount of office space available despite a weaker office market.
The report suggests that developers perhaps see smaller performing cities as higher risk, where a shortage of land supply and planning approval deters investment. It urges these cities to increase their desirability to developers through raising their profile with national property agents whilst liaising with their existing businesses to define their future requirements. They should work closely with their planning authorities to maximise the choice for developers.
As office based employment continues to grow it is essential that the supply of space satisfies areas that are witnessing strong growth. Cities need to understand their own office stock and react to changes within their own economic climate.
In the serviced office market, officebroker.com witnessed a drop in enquiry levels for Crawley, Reading and Aldershot for the first quarter of 2012, in comparison to 2011. Whilst this doesnΓÇÖt reflect the findings from Centre for Cities report, perhaps it suggests that businesses are already looking further afield due to a lack of space.
Our Central London stats mirrored the findings from the report with 2011 seeing both an increase in clients taking up office space and the cost per workstation, in comparison to 2010. Q1 2012 also saw the highest workstation price for this quarter for the past 5 years.
For more information on our unique serviced office market research, please visit our Knowledge Centre.
- Q1 2012: Workstation Price Hits 5 Year High
- Office Space Uptake Rises in North East
- Financial Capital Shifts to Dockland Offices