North East Resilience & Office Space Demand
The Office for National Statistics has released fresh data showing that the economy in North East England held up strongly during the recession, with only London showing a greater level of resistance ΓÇô a trend also reflected in the regions serviced office space market during the third financial quarter of 2010 according to officebroker.com.
According to the Office for National Statistics data, the Gross Value Added (GVA) throughout England reduced by 2.2%, but only by 1.5% in London and the North East ΓÇô proving the ΓÇ£hardest hitΓÇ¥ label given to the North East as inaccurate, as Ross Smith of the North East Chamber of Commerce (NECC) explained;
ΓÇ£During the recession, the North East was painted as one of the worst affected parts of the country but this latest data categorically shows this to be untrue. NECC has long said that the North East business community is far more resilient now than in previous recessions and these statistics clearly demonstrate this.ΓÇ¥
Additional research from the UKΓÇÖs largest independent broker of serviced office space, officebroker.com, also supports the North EastΓÇÖs positive position over many other regions of the UK.
The Serviced Office Review: North East Q3 2010 from officebroker.com, which provides a quarter-on-quarter analysis of the SME rich serviced office sector, reported a 52% increase in the number of new businesses entering serviced office space in Q3 2010 compared to the same three month period in 2009.
In addition to this up-swing in office space take-up, encompassing the key office markets of Newcastle-upon-Tyne, Sunderland and Middleborough, the broker also recorded an 85% increase in the average license length of those entering serviced offices ΓÇô rising from just 4.4 months in Q3 2009 to 8.2 months in Q3 2010.
It would also appear that the increased take-up in this section of the North East office market has helped to drive workstation prices up, rising from ┬ú146.00 in Q3 2009 to ┬ú184.00 in Q3 2010.
Despite this quarter-on-quarter price rise however, workstation prices across the North EastΓÇÖs serviced offices remain ┬ú129.00 below the pre-recession price of ┬ú313.00 per workstation recorded in Q3 2008.
ΓÇ£The North East faces significant challengesΓÇ¥ continue Mr Smith of the NECC ΓÇ£not least the fallout from the ongoing public sector spending cuts. If, however, we can genuinely cement our position as a world leader in areas such as low carbon vehicles and renewable energies then there is every opportunity for us to remain ahead of other regions.ΓÇ¥
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