Office Space Review: Scotland Q3 2010
The number of businesses entering Serviced Office Space in Scotland between July-September 2010 was 15% lower than in the same period of 2009, but despite the lower levels of office space up-take, workspace requirements and longer term deals have improved.
Published in the Serviced Office Review: Scotland Q3 2010 report from officebroker.com, the UKΓÇÖs largest independent broker of serviced office space, the industry research provides an insight into the SME rich environment of the flexible workspace industry.
Responding to the report, Heather Conkey, Centre Manager at the Forsyth Business Centre in Edinburgh agreed with officebroker.comΓÇÖs findings and explained the activity from her first-hand experience of interacting with both current and prospective clients.
ΓÇ£The average workstation price has reduced and in this time of economic uncertainty Serviced office tenants (SOTS) are more comfortable with looking for longer term deals at competitive pricing rather than a shorter term deal when the price may be increased at the end of the term.ΓÇ¥
Addressing the lower number of businesses shown to have entered serviced office space in Q3 2010, Heather explained:
ΓÇ£IΓÇÖve also found that where Companies tried to weather the economic recession in 2009 and hoped it would recover in 2010 – an increasingly faltering economy, not improving as expected – has led to many companies deciding to wait before either starting up a new business or seeking new accommodation which is reflected in the number of newly signed SOTS being 15% lower in Q3 2010 than Q3 2009ΓÇ¥
But despite the apparent hesitancy from businesses, experienced by Forsyth in Edinburgh and shown through the officebroker.com report, enquiry levels for serviced office space throughout Scotland have continued to increases, with the 9% rise recorded in Q3 2010 building upon previous increases in Q1 and Q2 to help record a 24% overall increase in enquiry levels since the beginning of 2010.
ΓÇ£Whereas 2009 remained quite steady in terms of enquiries for office spaceΓÇ¥ continued Heather, ΓÇ¥there have been quite a few peaks and troughs throughout 2010 due, particularly in Edinburgh, to the uncertainty in the financial markets.ΓÇ¥
ΓÇ£I can concur that Forsyth have certainly had more enquiries in Q3 and whereas at the beginning of the year the enquiries received were for smaller space it would certainly seem to be the case that companies are expanding within either their existing building or looking elsewhere for more space.ΓÇ¥
And with financial uncertainty encouraging more and more businesses to cut-costs and streamline their activity, Heather also believes that many of those businesses making enquiries are testing the market.
ΓÇ£There have certainly been a lot of enquiries from SOTS in other Business Centres looking around for the best price for office space available.
ΓÇ£In the majority of these cases, however, the SOT remains in situ and uses the pricing as a bargaining tool with their existing provider to negotiate a better renewal deal. In some cases IΓÇÖve found that people are making speculative enquiries only to test the market and to see what is out there.ΓÇ¥
The Serviced Office Review Series is produced quarterly by officebroker.com and comprises of 12 regionally focused instalments, with each edition tracking both year-to-date and a month-by-month activity. All editions of this research into the serviced office space sector are available to download for free from the Stats & Facts section of the officebroker.com website. [/p]
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