North West Office Market ΓÇÿWill CopeΓÇÖ with Cuts
Property consultants CBRE are predicting that the office space market across the North West will cope well with the expected cuts in the public sector ΓÇô despite acknowledging that the north of England looks set to bear the weight of government jobs cuts.
Reported by TheBusinessDesk.com, the commercial property firm states that it believes the demand for office space from the public sector will decrease, with cities such as Liverpool, which has the largest volume of office space occupied by the public sector of any UK regional city, set to face the toughest test.
In comparison Manchester, which has only 4% of its total office space supply occupied by those in the public sector, is expected to experience only a marginal impact.
ΓÇ£Public sector cuts donΓÇÖt necessarily mean the end of demand for this areaΓÇ¥ explained John Ogden, MD of the CBRE office in Manchester.
ΓÇ£Existing office leases will at some point expire and the opportunity to consolidate into more efficient buildings will arise.ΓÇ¥
“Regional cities will remain attractive on cost grounds, and in some instances there may still be demand for Grade A stock. Growth in the financial and business services sector is expected to impact heavily on the strength of the regional office markets over the coming years.ΓÇ¥
The Serviced Office Perspective:
According to research conducted on the serviced office market, which provides flexible office solutions to a full range of businesses, both Manchester City Centre and the wider North West region have seen increases in the number of new businesses entering office space during the opening months of 2011.
Comparing the activity of Q1 11 with that of Q1 10, the Serviced Office Review Series from officebroker.com reports a 200% increase in office space take-up in Manchester City Centre and a 52% increase across the North West overall.
The cost of office space has also increased, rising from ┬ú231.00 per workstation in Q1 10 to ┬ú252.00 in Q1 11 within Manchester City Centre and from ┬ú171.00 to ┬ú176.00 across the North West.
To explore the Serviced Office Review Series, which is the only regular research conducted into the UKΓÇÖs serviced office market, simply follow the link below: