Serviced Office Review: North East Q3 2010
The North East has seen a significant rise in the number of newly signed businesses entering serviced office space in Q3 2010 according to a report from the industryΓÇÖs leading independent broker officebroker.com, with a 52% increase being recorded between August ΓÇô September 2010 compared to the same period in 2009.
Revealed in the firmΓÇÖs quarterly research series the Serviced Office Review, which tracks and presents changes in the serviced office space sector, the surge in new businesses entering serviced offices during Q3 is in stark contrast to the activity recorded in the opening quarter of 2010, during which the number of businesses entering serviced office space was 57% lower than in the previous year.
The Q3 2010 increase builds upon the stability that appeared to return to the North EastΓÇÖs serviced office market in Q2 2010, during which the number of newly signed businesses entering office space equalled that of Q2 2009.
Despite this three-step recovery in the regions fortunes, the total number of newly signed serviced office tenants remains -8% below 2009 levels for the year-to-date according to the officebroker.com statistics. But with the notable up-turn shown in Q3, it will be hoped that this activity will continue into Q4 and on into 2011.
Appearing hand-in-hand with the increased levels of up-take in the North East, the officebroker.com report also shows a significant rise in the initial license length being signed by businesses entering serviced office space during this same period, with the Q3 2009 average of 4.4 months increasing by 85% in Q3 2010 to an average license length of 8.2 months.
Given that average workstation prices throughout the region have also shown an increase, rising by ┬ú38.00 from ┬ú146.00 in Q3 2009 to ┬ú184.00 in Q3 2010, the increased license lengths being reported could be driven by increased confidence levels rather than businesses seeking to secure longer term deals at bargain prices.
As a result of the longer license lengths being committed to by those businesses entering serviced offices during Q3 2010, the North East region has seen the average license length year-to-date rise to 8.9 months ΓÇô the longest average license length of any UK region to-date in 2010.
Not all areas of the North EastΓÇÖs serviced office market have seen increases however, with the data from officebroker.com revealing a 29% reduction in average workstation requirements, falling from an average of 4.5 workstations per client in Q3 2009 to 3.2 workstations per client in Q3 2010.
Follow the link to access a full copy of the report: Serviced Office Review: North East Q3 2010
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