Stability & Growth in UK Office Space
When comparing the length of licenses being signed by businesses between January ΓÇô April over the last 3 years, it becomes apparent that as the UK fell into recession (Q4 08 ΓÇô Q4 09) the length of license signed by those entering serviced office space declined.
This downward change, which underlined the low confidence levels and uncertainty affecting business owners during this period, remained present in the market throughout 2009 ΓÇô placing the national average license length 20% behind 2008 levels by the close of 2009.
As can be seen in the accompanying graph however, the opening months of 2010 have delivered a far more stable start for the market, matching 2009ΓÇÖs levels between January ΓÇô March before rising back to 2008 levels during April.
While some regions of the UK have still recorded falling license lengths, the overall stability recorded in the serviced office space market demonstrates that business owners are no longer cutting back their commitments in fear of an uncertain future.
Whether the upswing recorded in April ΓÇô the opening months of Q2 2010 ΓÇô will be maintained is yet to be seen. Will the serviced office space market continue to enjoy increased commitment from those businesses utilising it? Will the election and spending cuts announced today impact upon lending and general confidence levels amongst business owners?
We here at officebroker.com will certainly be keeping an eye on the market to track any such changes ΓÇô all of which will be included in our Serviced Office Review Series: Q2 2010 which will be available for free from the Stats & Facts section of the officebroker.com website.