6 Month High for Workstation Costs in Central London
Peak workstation prices in Central London surged during January
The peak cost of workstations in Central LondonΓÇÖs serviced offices jumped to ┬ú978.00 in the opening month of 2010, marking the highest monthly prices recorded in over 12 months and a substantial increase on the prices recorded in the previous 6 months.
This increase follows a string of reports highlighting increased activity within the commercial property market, with a glut of large deals cutting into the limited supply available within Central London. In the same way that this dwindling supply has handed power back to commercial landlords, pushing prices back up, it would appear that the cityΓÇÖs serviced office providers have benefited in a similar way, as Jim Venables, Managing Director of officebroker.com explains.
ΓÇ£As a broker, we are starting to see enquiries from large corporate firms making a comeback. Many of our larger clients require project space, and the recession put a lot of projects on hold ΓÇô but now that business confidence is being restored we are seeing a rise in the number of enquiries coming in from corporate clients.ΓÇ¥
The pressure on supply levels amongst serviced office buildings comes in spite of a high number of new centres entering the market in the last 12 months. According to officebroker.com, who work alongside 95% of all UK serviced office providers, the number of new centres in Central London increased by 78 during 2009 ΓÇô This expansion would have no doubt been helped by the low commercial rents of 2009.
With the likes of Sky News this week taking serviced space at Abbey Business Centres offices in the ΓÇ£GherkinΓÇ¥ and officebroker.com confirming a number of corporate clients in the process of securing 75+ workstation deals, the price jump witnessed in January could well herald the return of growing workstation costs in LondonΓÇÖs serviced office market.
But if the upswing witnessed in commercial property has been reflected in the serviced office market, the warnings that have accompanied the ΓÇ£property rallyΓÇ¥ may also apply.
A full analysis of how the Central London serviced office industry has faired during the entirety of Q1 will be published by officebroker.com in mid April, identifying the lasting impact of the surge seen in January. This report will be available from www.officebroker.co.uk.