Office Space Review: Yorkshire & Humberside Q3 2010
Despite increased license lengths and stability in enquiry levels, the take-up of serviced office space throughout Yorkshire & Humberside reduced in the 3rd quarter of 2010 according to an industry report from the UKΓÇÖs largest broker of serviced office space, officebroker.com.
In the Serviced Office Review: Yorkshire & Humberside Q3 2010 report, which tracks activity within the serviced offices market, it is shown that the number of newly signed businesses entering serviced office space was 34% lower during Q3 2010 compared to Q3 2010.
This decrease follows a reported 21% rise in the number of newly signed businesses entering serviced offices in Q2 2010, itself a notable increase on the 35% decrease that occurred during the opening three months of 2010.
The impact of this up-and-down activity is a year-to-date decrease of 19% in the total number of newly signed businesses entering serviced office space in 2010 compared to 2009.
While up-take levels are shown to have reduced, the initial license lengths of those businesses which did enter serviced offices during Q3 2010 has increased significantly, rising by an average of three months from 6.7 months in Q3 2009 to 9.7 months at the close of Q3 2010.
Could this increase in tenure indicate growing levels of confidence and commitment from those businesses entering space, or could the 21% decrease in average workstation price that was also recorded during Q3 2010 have spurred businesses to secure longer terms at what is undoubtedly a particularly low price?
Having reduced from an average of price of ┬ú198.00 per workstation in Q3 2009 to ┬ú155.00 per workstation in Q3 2010, a decrease of ┬ú43.00 (21%), Yorkshire & Humberside recorded the 2nd lowest average workstation price of any region in the UK.
Comparing this average price of ┬ú155.00 per workstation to that of the national average (┬ú251.00) during this same period, average workstation price in Yorkshire & Humberside is ┬ú89.00 (30%) lower than the national average according to the officebroker.com report. Could it be these low workstation prices that have driven the increase in initial license lengths?
Whatever the reason, the average license length of 9.7 months recorded by officebroker.com in the Yorkshire & Humberside region during Q3 2010 was the highest in the UK, exceeding the national average of 8.0 months in Q3 2010 by 21%.
You can download a free copy of the Serviced Office Review: Q3 2010 report from officebroker.com by clicking HERE. Additional editions of the Serviced Office Review Series, which includes the market for office space in Central London, can be accessed by visiting the Stats & Facts section of the officebroker.com website.
To search for serviced office space near you, visit www.officebroker.com.