DTZ: Manchester Office Space ΓÇ£Good ValueΓÇ¥
Reported on TheBusinessDesk.com, the survey from DTZ also delivers expectations of a further 2% increase in office space costs across Manchester during 2011, with rising rental costs, property taxes and additional service charges seen as the driving force behind such a rise.
Despite these price rises, Manchester office space should still be seen as ΓÇ£good valueΓÇ¥ according to DTZ when considering the city as a location and comparing overall business costs. But as Paul Spratt, Director of DTZΓÇÖs Landlord and Tenant team explained to TheBusinessDesk, this could be about to change:
ΓÇ£Although occupiers in regional cities such as Manchester and Liverpool can continue to benefit from financial incentives from landlords in most markets, the window of opportunity is closing.ΓÇ¥
“Many sectors of the market in Manchester and the North West will face shortages of stock during the anticipated lag between confidence recovering and the supply of new development catching up.ΓÇ¥
Away from the regional office markets, Central London, which after Hong Kong is the second most expensive office location in the world, appears to have already been feeling the effects of diminished stocks of grade A office space.
Created by a ΓÇ£lagΓÇ¥ in new office developments caused by the financial downturn, a combination of growing demand and limited immediate supply have resulted in the cost of office space being driven upward across the Capital.
The Serviced Office Perspective
Across the UK the cost of Serviced Office Space has both mirrored and contradicted the trends identified by DTZ in the commercial office market. As with the commercial office market, Central London has retained and expanded its position as the UKΓÇÖs most expensive serviced office location, recording an average workstation price of ┬ú513.00 during 2010.
Yet while Manchester has been identified by DTZ as the third-most expensive office location in the UK, its overall position in the serviced office market is far lower. Having recorded an average price of ┬ú198.00 per workstation during 2010, Manchester becomes only the 7th most expensive office location amongst the UKΓÇÖs key city markets, as outlined in the graph below:
*All serviced office data sourced from officebroker.com. To access exclusive market data and research from officebroker.com, the leading independent broker to the UKΓÇÖs serviced office sector, visit the Stats & Facts section of the officebroker.com website.
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