Serviced Office Space Prices Set for Increase?
The cost of renting serviced office space throughout the UK may be about to rise for the first time since 2008 according to early indications from serviced office specialist officebroker.com.
Throughout 2009 workstation costs in business centres offering serviced offices fell by an average of 16%, a trend which was repeated quarter on quarter as businesses downsized or seized trading as a result of the economic downturn.
Based on activity between Jan ΓÇô Feb 2010, the average price per workstation recorded in the UK has risen when compared to the same period of 2009. At present the statistics show workstation costs to be 11% above previous levels.
ΓÇ£I believe in some parts of the country we saw prices drop by as much as 40%ΓÇ¥ explains Business Centre Association (bca) Chair Julie Calder; ΓÇ£so in my view it (the officebroker.com data) shows that pricing has finally started to recover ΓÇô although it still has some way to goΓÇ¥
Jim Venables, co-founder and MD of officebroker.com was present at a recent round of bca meetings where fellow members had been vocal in their desire to see such a change and is pleased with what the early data shows;
ΓÇ£Being able to say that Q1 has shown real signs of delivering a turn-around is satisfying and something I am sure will be welcomedΓÇ¥ explains Jim, ΓÇ£We will still have to see how March performs and whether this can be sustained ΓÇô but it is at least a positiveΓÇ¥
The cautious optimism expressed by both the bca and officebroker.com was also reiterated by Sallie Maskrey of Portal Business Centres;
ΓÇ£The biggest issue we faced in 2009 as a business community here at Portal was the lack of confidence and negative news in the economyΓÇ¥ continues Sallie, ΓÇ£The data from officebroker.com helps to underline that confidence is now stronger ΓÇô but it still has some distance still to goΓÇ¥
A comprehensive insight into regional activity in the serviced office market will be published by officebroker.com in mid-April. If you would like to receive these free industry reports please email email@example.com. You can access reports covering Q4 09 by visiting the stats & facts section of www.officebroker.com.