The ┬ú978 Desk – Flexible Office Prices Leap in City
The recent upswing in the commercial property market has been mirrored throughout Central LondonΓÇÖs serviced offices according to a report from leading broker officebroker.com, having recorded a 19% increase in serviced office workstation prices in Q1.
Occupying sites from Canary Wharf to 30 St Mary Axe, the 228 buildings offering serviced offices spread across Central London have become an important part of the office market within the city. But having seen the average price per workstation decrease by 23% overall during 2009, providers of serviced office space in Central London were just as keen as those within the commercial property market to begin seeing increases as they entered 2010.
Well, according to the Serviced Office Review: Central London Q1 2010 report released this week by serviced office space specialistΓÇÖs officebroker.com, the Central London market has delivered exactly what they had wanted to help drive the market back toward pre-recession levels.
With workstation prices increasing by 19% on Q109 levels and the average price per workstation reaching ┬ú514.00, itself the highest average price since 2008, the results for Q1 demonstrates that demand for flexible office space has not only remained strong, but that prices have begun to rise as supply begins to become a premium. The impact of which is evident in the peak rate of ┬ú978.00 per workstation achieved in SW1 during January.
ΓÇ£Central London as the heartland for recovery seems well foundedΓÇ¥ explains Chris Meredith, Head of UK Sales at officebroker.com, ΓÇ£The strong performance recorded in the opening period of 2010 will hopefully be a sign of what will filter down into other regions throughout the UKΓÇ¥
While even grade ΓÇ£AΓÇ¥ serviced office space in any of the regional cities is unlikely to command the kind of rates seen in SW1 during January, the presence of such prices in the market underlines the value placed on serviced offices by businesses operating in Central London, a value which will be emulated throughout the likes of Birmingham, Manchester and Edinburgh as the recovery gains strength.
*officebroker.com defines Central London as areas located within the following postcode prefixes: EC, SE1, SW1, W1 and WC