Increase In Demand For Office Space In Edinburgh and Glasgow
Edinburgh led the way during 2011
The data, revealed by market leader officebroker.com as part of their quarterly research, showed a 19% and 14% increase in demand for office space in Edinburgh and Glasgow respectively.
ItΓÇÖs believed that the alternative to traditional office space has increased in popularity as businesses choose to make flexibility a top priority ΓÇô with a number of larger firms joining the market.
Businesses in both cities were also found to be demanding larger space, increasing their average office requirements by just under two workstations when compared to the previous year.
The report also revealed that the average price per workstation was on the rise in both cities due to an influx of larger firms taking space, reducing availability and forcing up price.
The average price per workstation in Edinburgh increased by 28% to ┬ú315, making it the most expensive city centre location for serviced office space outside of central London.
Businesses wirh larger requirements headed to Glasgow
Office space in Glasgow also saw a price increase, rising by 21% when compared to the previous year, to an average of ┬ú206 per workstation.
Average contract length in both cities was revealed to be nine months, the same duration as the previous year, which indicates firms in both cities are keen to retain an element of flexibility amidst economic uncertainty.
Chris Meredith, UK head of sales at officebroker.com, says the news is reflective of a wider need for flexibility amongst UK firms.
Mr Meredith said: ΓÇ£ScotlandΓÇÖs leading cities appear to remain attractive locations for business, with the growing number of larger firms entering the market indicating that flexibility is a core concern for businesses of all shapes and sizes.
ΓÇ£The activity recorded across Edinburgh & Glasgow reflects the changing needs of businesses during uncertain times.
ΓÇ£By choosing to utilise serviced office space businesses are introducing a levels of flexibility to their operations that traditional long-terms leases simply cannot offer. The competitive advantage this affords such businesses allows them to react more readily to changing demands while also not locking their capital into property.
ΓÇ£It is however worth noting that the departure of Tesco, who had occupied a significant portion of EdinburghΓÇÖs serviced office stock, may bring significant change in 2012.ΓÇ¥
Where did this appear?
Published by The Scotsman 28/01/12
Published by BBC News 31/01/12