Serviced Office Space: South West Q3 10
This report focuses on the following key areas in the South West *** region:
Using the statistics from these areas, a detailed overview of the serviced office industry in the South West was compiled to provide a comparative report of the changes within the serviced office market during Q3 10 compared to Q3 09.
*** officebroker.com defines the South West region as areas located within the following postcode prefixes: BA, BH, BS, DT, EX, GL, PL, SN, SP, TA, TQ and TR.
- SUPPLY OF SERVICED OFFICE SPACE
[The number of serviced office buildings registered with officebroker.com in the South West increased from 148 to 152.
The total number of serviced office buildings registered with officebroker.com in the South West increased to 152 during Q3 10 ΓÇô representing a net increase of 4 building on the figure of 148 recorded at the close of Q2 10.
officebroker.com currently lists 2,544 active serviced office buildings in the UK, with the 152 serviced office buildings listed within the South West region accounting for 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 +23%.
Quarterly Activity ΓÇô The total number of enquiries received for serviced office space by officebroker.com in the South West increased by +23% in Q3 10 compared to Q3 09.
Year-to-Date Activity ΓÇô Having also generated an increased number of enquiries during Q1 and Q2 of 2010, the additional rise recorded in Q3 has resulted in an overall increase of +45% in the total number of enquiries received during 2010 compared to the same period of 2009.
National Comparison ΓÇô During Q3 10 the total number of enquiries received by officebroker.com throughout the UK increased by +16% compared to Q3 09, indicating that the number of extra enquiries officebroker.com has been able to successfully generate in the South West was higher than in other areas of the UK during Q3 10.
* 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 new placed SOTs was -51% lower during Q3 10.
Quarterly Activity ΓÇô The number of businesses taking serviced office space through officebroker.com in the South West was -51% lower in Q3 10 compared to Q3 09.
Year-to-Date Activity ΓÇô In spite of overall increases in the number of new SOTs during both Q1 and Q2, the number of SOTs entering serviced office space via the officebroker.com service is currently -16% lower than in the same nine-month period of 2009.
As can be seen in both Fig 4 and Fig 5, this overall decline occurred as a result of the number of newly signed SOTs failing to match the higher levels recorded in both August and September of 2009.
National Comparison ΓÇô During Q3 10 the total number of SOTs taking serviced office space through officebroker.com decreased nationally by -17% compared to Q3 09.
Having recorded a -51% decrease in SOT numbers during Q3 10, the South West would appear to have experienced a more substantial decrease in the number of newly signed SOTs compared to the UK as a whole during Q3 10.
- AVERAGE WORKSTATIONS PER SOT
Average workstations per SOT increased to 3.7 in Q3 10.
Quarterly Activity ΓÇô The average number of workstations per SOT totalled 3.7 at the close of Q3 10, a change of +1% on the average workstation requirement of 3.6 per SOT recorded in Q3 09.
Year-to-Date Activity ΓÇô Taking into account all the activity recorded during the opening nine months of 2010 the average workstation requirement in the South West is currently 4.9, a requirement which is within 1% of the 4.8 workstations recorded during the same period of 2009.
National Comparison ΓÇô Throughout the UK in Q3 10 average workstation requirements remained within 1% of the levels recorded in Q3 09, having fallen from 4 to 3.9 workstations.
Comparing this national activity to that of the South West in Q3 10, both the percentage change (+1%) and average workstation requirement (3.7) remained in-line with national trends during Q3 10.
- SERVICED OFFICE SPACE COSTS
Average price per workstation was -12% lower in Q3 10.
Quarterly Activity ΓÇô The average price per workstation in the South West was ┬ú258.00 in Q3 10, a decrease of ┬ú35.00 (-12%) on the average price of ┬ú293.00 recorded in Q3 09.
Year-to-Date Activity ΓÇô With lower prices having been recorded in 8 out of 9 months in 2010, the average workstation price in the South West is currently ┬ú196.00, a price ┬ú57.00 (-22%) lower than the average price of ┬ú253.00 recorded in the same nine-month period of 2009.
National Comparison ΓÇô During Q3 10 the average price per workstation fell nationally by -11%, from ┬ú251.00 in Q3 09 to ┬ú224.00 by the close of Q3 10.
While the percentage change recorded in the South West (-12%) reflects the national trend, the average workstation price remains ┬ú34.00 higher than the national average for this same period.
- AVERAGE LICENSE LENGTHS
Initial license lengths decreased to 5.6 months.
Quarterly Activity ΓÇô In Q3 10 new SOTs entering serviced office space in the South West through officebroker.com were signing average license lengths of 5.6 months, a licence length which remained within 1% of the license length of 5.8 months recorded in Q3 09.
Year-to-Date Activity ΓÇô Having exceeded 2009 levels in both Q1, Q2 and now Q3, the average license length for new SOTs in the South West is currently 7.1 months, an overall increase of 1.8 months (+34%) on the requirement of 5.3 workstations recorded during the same three quarters of 2009.
National Comparison ΓÇô During Q3 10 license lengths averaged 8 months nationally, an increase of +26% on the average license length of 6 months recorded in Q3 09.
With an average license length of 5.6 months being recorded in the South West, businesses entering serviced office space via officebroker.com during this period were committing to 2.4 months less (-30%) compared to the national average during Q3 10.
When taking into account all the information for Q3 10, the following key findings can be drawn:
- Enquiry levels continued to increase.
- The overall number of new serviced office tenants decreased.
- Average workstation price continued to fall below 2009 levels.
- Average license lengths remained largely unchanged within the region but below the national average.
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