Edinburgh Office Market Stands Out in Q2 11
The cost of office space in Edinburgh has continued to rise according to new research from officebroker.com, with the latest data from the online brokerage revealing the cost of a single serviced office workstation to be 40% higher than that of the national average during Q2 11.
With an average price of ┬ú260 per desk recorded in the heart of the Scottish Capital, office space in Edinburgh stood ┬ú80 higher than the national average of ┬ú180 during the second quarter of 2011.
As the cost of serviced office space continued to rise during Q2 11, building upon the previous increase recorded in Q1 11 that has helped to extend the average workstation price to ┬ú307.00 YTD, serviced offices would also appear to be growing in popularity, with a 33% increase in the number of businesses entering serviced office space between April-June compared to 2010.
Interestingly this up-swing in take-up and price has occurred during a period in which the overall number of enquiries received by officebroker.com has decreased, with a 14% reduction in the number of serviced office space enquiries received by officebroker.com during the second quarter of 2011.
While up-take and price increased, the level of commitment shown by these newly placed serviced office businesses decreased, with initial license lengths falling from an average of 10 months in the second quarter of 2010 to just 4.5 months in the same period of 2011.
Only 50 miles away in Central Glasgow, the state of the serviced office market presents a stark contrast to the one shown in Edinburgh between April-June 2011.
While Glasgow has seen businesses with larger requirements and greater commitment entering serviced space during the second quarter of 2010, the volume of businesses making the move to serviced offices has fallen by a third.
With an average requirement of 6.6 workstations each, the amount of office space required by businesses entering serviced offices in Glasgow far exceeds the 3 workstation average recorded across Scotland during Q2 11.
During this same 3 month period workstation prices stood at ┬ú161, resulting in a workstation price which fell below the Q2 11 national average of ┬ú180 per workstation. Activity centered round higher priced take-up in Q1 11 did however result in a YTD average of ┬ú233 being recorded in Glasgow between January ΓÇô June.
To learn more about the activity in the serviced office markets of Edinburgh, Glasgow or Scotland explore the Serviced Office Review series from officebroker.com HERE.