Serviced Office Review: Wales – Q4 10
The report focuses on the following key areas in
- Supply of and demand for serviced office space – In terms of the number of enquiries, the size and shape of those enquiries and the number of placements
- New Serviced Office Tenants (SOTs) – In terms of workstation prices and initial license length commitment
Using the statistics from these areas, a detailed
overview of the serviced office industry in Wales
was compiled to provide a comparative report of
the changes within the serviced office market
during Q4 10 compared to Q4 09.
*** officebroker.com defines the Wales region as areas
located within the following postcode prefixes: CF, LL, NP,
- SUPPLY OF SERVICED OFFICE SPACE
The number of serviced office buildings registered with officebroker.com in Wales
increased to 43 during Q4 10
The total number of serviced office buildings registered with officebroker.com in Wales was 43 in Q4 10, an
increase of 1 serviced office building on the figure of 42 registered at the close of Q3 10.
officebroker.com currently lists 2,616 active serviced office buildings in the UK, the 43 serviced office buildings listed within Wales accounts for 1.6% of the total UK supply offered / available through the officebroker.com service.*
*Information correct at time of publication
- DEMAND FOR SERVICED OFFICE SPACE
Enquiry levels increased by +86% overall during Q4 10
Quarterly Activity ΓÇô The total number of enquiries received by officebroker.com for serviced office space in Wales was +86% higher in Q4 10 than in the same period of 2009.
Year-to-Date Activity ΓÇô As shown in Fig 3, higher enquiry levels were generated in 10 out of 12 months during 2010, with the largest year-on-year increases taking place in the final 3rd of 2010.
The overall impact of this activity was a year-on-year increase of +30% in the number of enquiries received by officebroker.com for serviced office space in Wales.
National Comparison ΓÇô During Q4 10 the total number of enquiries received by officebroker.com throughout the UK rose by +42%, indicating that the increases seen in Wales during this same 3 month period were substantially higher.
* Effective from 1st February 2010, officebroker.com extensively expanded its online marketing and affiliate program.
As a direct result of this activity the number of enquiries received by officebroker.com increased substantially from February 2010 onward. Such increases, while generating abnormally large changes when placed against previous data, will ensure that the statistics reported by officebroker.com are an even more accurate assessment of the serviced office market here in the UK.
- NEW SERVICED OFFICE TENANTS (SOTs)
The number of newly signed SOTs reduced by -35% during Q4 10
Quarterly Activity ΓÇô The number of newly signed SOTs entering serviced offices via the officebroker.com service was -35% lower in Q4 10 than in the same period of 2009.
Year-to-Date-Activity ΓÇô Over the course of 2010, the overall number of newly signed SOTs has reduced by -51% on the levels recorded during 2009.
National Comparison ΓÇô During Q4 10 the total number of SOTs taking serviced office space through officebroker.com was -26% lower than in Q4 09.
Having recorded a -35% decrease in SOT numbers during Q4 10, the activity recorded by officebroker.com in Wales would suggest that the serviced office market in Wales experienced a more difficult period than the rest of the UK during the closing months of 2010.
- AVERAGE WORKSTATIONS PER SOT
Average requirement decreased to 3.1 workstations in Q4 10
Quarterly Activity ΓÇô The average number of workstations per SOT totalled 3.1 at the close of Q4 10, a decrease of 0.4 (-12%) of a workstation on the average requirement of 3.5 recorded in Q4 09.
Year-to-Date-Activity – As shown in Fig 7, workstations requirements in Wales during 2010 have been characterised by a series of highs and lows, with a difference of 5 workstations having been recorded between the July high of 6.5 workstations and the April low of 1.5 workstations.
Despite this varied activity, the overall workstation requirement recorded in Wales during 2010 (3.3) remained within +3% of the requirement recorded during 2009 (3.2).
National Comparison ΓÇô The average workstation requirement in the UK during Q4 10 was 3.7 workstations per SOT, an increase of +3% on the average requirement of 3.6 workstations recorded by officebroker.com during the same period of 2009.
Comparing this national activity to that recorded in Wales, it would appear that the workstation requirements were trending in-line with national averages during the final months of 2010.
- SERVICED OFFICE SPACE COSTS
Average price per workstation was ┬ú192.00 in Q4 10
Quarterly Activity ΓÇô The average price per workstation in Wales was ┬ú192.00 in Q4 10, a price that is ┬ú3.00 (-2%) below the price of ┬ú195.00 per workstation recorded during Q4 09.
Year-to-Date Activity ΓÇô During 2010 an average workstation price of ┬ú207.00 has been recorded by officebroker.com in Wales, a price that is ┬ú11.00 (+6%) higher than the 2009 average price of ┬ú196.00.
As shown in Fig 9, average workstation prices within Wales have varied greatly in 2010, with a difference of ┬ú158.00 between the March peak of ┬ú298.00 and the April low of ┬ú140.00 ΓÇô indicating that the quality of office space being taken by serviced office based businesses in 2010 has remained varied.
National Comparison ΓÇô During Q4 10 the average price per workstation fell nationally by ┬ú6.00 (-3%), from ┬ú232.00 in Q4 09 to ┬ú226.00 by the close of Q4 10.
Comparing the activity recorded in Wales to this nationwide average, the data from officebroker.com shows workstation prices in Wales to have been ┬ú34.00 lower during the final quarter of 2010.
- AVERAGE LICENSE LENGTHS
Initial license lengths increased to 8 months during Q4 10
Quarterly Comparison ΓÇô In Q4 10 new SOTs entering serviced office space in Wales through officebroker.com were signing average license lengths of 8 months, an increase of 0.8 months (+12%) on the average license length of 7.2 months recorded during Q4 09.
Year-to-Date Comparison ΓÇô During the course of 2010, average license lengths in Wales increased by 2.9 months (+53%), rising from 5.6 months in 2009 to 8.5 months by the close of 2010.
National Comparison ΓÇô During Q4 10 license lengths averaged 8 months nationally, an increase of +14% on the average license length of 7 months recorded in Q4 09.
With an average license length of 8 months being recorded in Wales, businesses entering serviced office space via officebroker.com during this period were trending in-line with that of the UK national average.
When taking into account all the information for Q4 10, the following key findings can be drawn:
- Enquiry levels continued to increase.
- The number of newly signed SOTs reduced during Q4 10.
- Average workstation prices remained within 2% of 2009 levels.
- Average license lengths increased.
NEED TO KNOW MORE DETAIL?
Explore what our Insight Report service can offer by viewing a sample: CLICK HERE