Latest officebroker.com research finds a steady increase in short term occupancies
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.