Serviced Office Review: Yorkshire & Humberside – Q4 10
The report focuses on the following key areas in the Yorkshire & Humberside *** region:
ΓÇóSupply 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
ΓÇóNew 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 Yorkshire & Humberside 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 Yorkshire & Humberside region as areas located within the following postcode prefixes: BD, DN, HD, HG, HU, HX, LN, LS, S, WF and YO
SUPPLY OF SERVICED OFFICE SPACE
The number of serviced office buildings registered with officebroker.com in Yorkshire & Humberside increased from 230 to 234
The total number of serviced office buildings registered with officebroker.com in Yorkshire & Humberside increased to 234 during Q4 10 ΓÇô representing a net increase of 4 buildings on the figure of 230 recorded at the close of Q3 10.
officebroker.com currently lists 2,616 active serviced office buildings in the UK, with the 234 serviced office buildings listed in Yorkshire & Humberside accounting for 9% 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 +38% during Q4 10
Quarterly Activity ΓÇô The number of enquiries received by officebroker.com for serviced office space in Yorkshire & Humberside was +38% higher in Q4 10 than in the same period of 2009.
Year-to-Date Activity ΓÇô As shown in Fig 3, enquiry levels for serviced office space in Yorkshire & Humberside exceeded 2009 levels repeatedly in 2010. The overall impact of this activity was to increase the number of serviced office space enquiries received by officebroker.com by +23% during 2010.
National Comparison ΓÇô During Q4 10 the total number of enquiries received by officebroker.com throughout the UK exceeded Q4 09 levels by +42%, indicating that the change recorded in Yorkshire & Humberside was largely in-line with the national activity recorded during this same period.
* 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 was -57% lower in Q4 10
Quarterly Activity ΓÇô The number of new businesses entering serviced office space via officebroker.com during Q4 10 was -57% during 2010 than in the same period of 2009.
Year-to-Date-Activity ΓÇô During 2010, the overall number of newly signed SOTs was -32% lower than during 2009. As shown in Fig 5, SOT levels followed a similar pattern to 2009 during much of 2010, with the exceptions being March, July and October ΓÇô both of which look to have accentuated and extended the overall decrease.
National Comparison ΓÇô During Q4 10 the total number of SOTs taking serviced office space through officebroker.com was -26% lower than during the same three month period of 2009.
Having recorded a reduction of -57% in the number of SOTs during Q4 10, the Yorkshire & Humberside region has recorded a larger change in market activity than many other areas of the UK in Q4 10.
AVERAGE WORKSTATIONS PER SOT
Average requirement reduced to 2.7 workstations
Quarterly Activity ΓÇô The average number of workstations per SOT totalled 2.7 at the close of Q4 10, a reduction of 1.5 workstations (-35%) on the Q4 09 average of 4.2 workstations per SOT.
Year-to-Date-Activity – Comparing 2009 data against that of 2010, average workstation requirements have decreased slightly across the Yorkshire & Humberside region, dropping from 3.5 workstations in 2009 to 3.1 workstations at the close of 2010.
National Comparison ΓÇô The average number of workstations per SOT recorded in the UK during Q4 10 was 3.7 workstations, an increase of +3% on the Q4 09 requirement of 3.6 workstations.
Comparing this national activity to that of Yorkshire & Humberside in Q4 10, both the percentage change (-35%) and average workstation requirement (2.7) were notably lower than the national average recorded during this same 3 month period.
SERVICED OFFICE SPACE COSTS
Average price per workstation was ┬ú184.00 during Q4 10
Quarterly Activity ΓÇô The average price per workstation in Yorkshire & Humberside was ┬ú184.00 in Q4 10, a difference of just ┬ú3.00 (-2%) on the average price of ┬ú187.00 recorded in Q4 09.
Year-to-Date Activity ΓÇô Average workstation prices across Yorkshire & Humberside have failed to exceed 2009 levels on all but 3 occasions during 2010, resulting in an annual average price of ┬ú167.00, a price which is ┬ú28.00 below the price of ┬ú195.00 recorded during 2009.
National Comparison ΓÇô During Q4 10 the average price per workstation fell nationally by ┬ú6.00 (-3%), from ┬ú232.00 per workstation in Q4 09 to ┬ú226.00 per workstation by the close of Q4 10.
During Q4 10, workstation prices in Yorkshire & Humberside were ┬ú42.00 below this national average.
With an average workstation price of ┬ú184.00 recorded during Q4 10, the Yorkshire & Humberside region recorded the 3rd lowest workstation price of any UK region during the final quarter of 2010, with only the North East (┬ú171.00) and the West Midlands (┬ú173.00) recording a lower average price.
AVERAGE LICENSE LENGTHS
Initial license lengths increased to 9.1 months in Q4 09
Quarterly Comparison ΓÇô In Q4 10 new SOTs entering serviced office space in Yorkshire & Humberside through officebroker.com were signing average license lengths of 9.1 months, an increase of 1 month (+12%) on the average license length of 8.1 months recorded during Q4 09.
Year-to-Date Comparison ΓÇô In 2010 the average license length recorded by officebroker.com in the Yorkshire & Humberside region is 8.3 months, a +10% increase on the average licence length of 7.6 months recorded during 2009.
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 9.1 months being recorded in Yorkshire & Humberside, businesses entering serviced office space via officebroker.com during this period were committing to an additional 1.1 months compared to the national average.
Having recorded an average license length of 9.1 months, Yorkshire & Humberside posted the longest average license length of any UK region during Q4 10 alongside the South West and Central London areas.
When taking into account all the information for Q4 10, the following key findings can be drawn:
ΓÇóEnquiry numbers increased during Q4 10 compared to Q4 09.
ΓÇóThe number of new serviced office tenants was -57% lower.
ΓÇóAverage workstation price fell slightly below Q4 09 levels.
ΓÇóAverage license lengths exceeded 2009 levels and were the longest of any UK region during Q4 10.
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