Is now the time to make the move for new office space?
Is now the right time to make that move to new office space many businesses have been putting on hold? Well that would appear to be the opinion of some at a time when commercial property agents such as Jones Lang LaSalle are reporting the ΓÇ£bottoming outΓÇ¥ of the majority of regional office rents.
While many businesses have been choosing to stay in their existing office space, rather than soak-up the costs and risks of relocating during difficult financial times, reports from some regional commentators point toward now as being the right moment to break cover and secure the right space at the right price.
As would appear to be the case with many areas of the UK economy, the cycle of activity in Central London acts as a crystal ball for interpreting what will follow in the UKΓÇÖs regional markets ΓÇô given that rents in both the commercial and serviced office space market are now shown to be on the increase, the regional markets could begin to follow in the second half of 2010.
If this is the case, as both the Office Clock from Jones Lang LaSalle and the Serviced Office Review: Central London Q2 2010 report from officebroker.com suggest – the answer is yes. With rents in Central London on the rise it is reasonable to assume that the price of office space in regional centres will follow if the recovery is sustained.
But of course it is not just about securing the cheapest deal on office space that drives occupiers; there is also the question of quality, location and availability. Rising rental prices do of course imply that conditions are improving and that landlords and providers are responding accordingly. If this is the case then as more and more businesses decide to release the reins on their deferred office move the competition to find available office space of the appropriate quality and in a preferred location will increase significantly.