Prices to Exceed Pre-Recession Peak by 2012
Central London workstation prices should return to 2008 levels by the close of 2011 according to Jim Venables, with the officebroker.com MD also confidently predicting that these peak prices will be exceeded during 2012.
With workstation prices across Central London having now recovered to ┬ú539 after falling as low as ┬ú466 in 2009, the predicted upswing arrives at a time when the dynamic of the market has changed, with businesses who would have traditionally sought conventional leases turning to serviced offices in order to deliver the flexibility they need.
ΓÇ£The market has changedΓÇ¥ states Jim, ΓÇ£but this is a good thing and a platform from which providers can launch a price recovery and push things forwardΓÇ¥
While traditional serviced office based businesses are only now returning to the market, the impact on supply being created by this growing corporate requirement could prove beneficial for all, with these larger requirements influencing availability and promoting competition for the space on offer.
ΓÇ£This isnΓÇÖt just about Central LondonΓÇ¥ continues Jim, ΓÇ£The regional signs are positive and in key cities such as Manchester, Leeds, Sheffield, Bristol and Edinburgh prices are already showing notable improvement.ΓÇ¥
ΓÇ£While it is true that the regional markets are normally 6-12 months behind the heart of the Capital, the increased demand for flexible space from businesses should filter out, resulting in, I believe, all markets exceeding their peak 2008 prices during the next 12-18 monthsΓÇ¥
Do you agree with Jim? Will the industry continue to see workstation prices rise back toward the peaks of 2008? Make your thoughts known by leaving a comment below: