Serviced Office Space ΓÇô Tenant Numbers Tumble in Wales
A new report from leading serviced office space consultancy firm officebroker.com reveals the damage to the take-up of serviced office space in Wales during the opening quarter of 2010 ΓÇô but also highlights some positive signs that could see the market recovering and growing as 2010 unfolds.
Tenant numbers bottomed-out in Wales as businesses found themselves unable to complete the move to new serviced offices as the prolonged winter weather disrupted viewings and completions in the opening months of 2010.
While enquiry levels were quick to recover, the disruption to the sales cycle during December 09 to February 10 has had a lasting impact upon the flow of new tenants into serviced office space, an impact which is not expected to rectify itself until the early to middle period of Q2.
Despite the severe decline in serviced office tenants, supplementary areas of the market have delivered encouraging signs as to what may lie ahead if and when tenants are able to resume or complete their intended move to new serviced office workspace in the coming months.
Principle amongst these positives is a rise in workstation requirements, the industry term for a single working desk, which increased from 3.1 to 3.3 during the same period ΓÇô signalling the possibility of increased volume demand within the serviced office market in Wales. Should this increase in workstation requirements take-hold and extend across the market once tenants are able to return, serviced office providers could be set for a strong return as 2010 unfolds.
Additional findings in the officebroker.com report also point toward the possibility of rising commitments levels from serviced office tenants, as initial license lengths rose by 41% to 10 months during the opening quarter of 2010. Once again, if this trend amongst the few extends to the many, serviced office providers operating in Wales could enjoy a period in which greater space is occupied for a longer period of time ΓÇô delivering security and consistency back to the market.
The officebroker.com report covering serviced office activity in Wales is one of twelve regional reports produced quarterly, all of which are available to access and download from the Stats & Facts section of the officebroker.com website. As a natural extension of these reports, officebroker.com has also launched a new Premium Report Service which allows serviced office providers and landlords to examine market activity at postcode level.