Serviced Office Review: East – Q4 10
The report focuses on the following key areas in the East ***:
- Supply of and demand for serviced office space – In terms of the number of enquiries, the size and shape of those enquiries and the number of placements
- New Serviced Office Tenants (SOTs) – In terms of workstation prices and initial license length commitment
Using the statistics from these areas, a detailed overview of the serviced office industry in the East was compiled to provide a comparative report of the changes within the serviced office market during Q4 10 compared to Q4 09.
***officebroker.com defines the East region as areas located within the following postcode prefixes: AL, CB, CM, CO, HP, IP, LU, NR, PS, SG, SS, WD
- SUPPLY OF SERVICED OFFICE SPACE
The number of serviced office buildings registered with officebroker.com in the East increased from 188 to193
The total number of serviced office buildings registered with officebroker.com in the East of England was 193 during Q4 10 ΓÇô representing a net increase of 5 buildings on the figure of 188 recorded at the close of Q3 10.
officebroker.com currently lists 2,616 active serviced office buildings in the UK, with the 193 serviced office buildings listed within the East accounting for 7% of the total UK supply offered / available through the officebroker.com service.*
*Information correct at time of publication
- DEMAND FOR SERVICED OFFICE SPACE
Enquiry levels increased by 71% overall during Q4 10
Quarterly Activity ΓÇô The number of enquiries generated by officebroker.com for serviced office space across the East of England exceeded Q4 09 levels by +71% during Q4 10.
Year-to-Date Activity ΓÇô Between January ΓÇô December 2010 the number of serviced office space enquiries received by officebroker.com has increased by +49% overall compared to 2009.
As shown in Fig 3, enquiry levels exceeded 2009 levels month-on-month throughout 2010, with notable peaks occurring in February, March, July and November.
National Comparison ΓÇô During Q4 10 the total number of enquiries received by officebroker.com throughout the UK increased by +42% when compared to Q4 09, indicating that the increases seen in the East are greater than that of the UK national average during this same period.
* Effective from 1st February 2010, officebroker.com extensively expanded its online marketing and affiliate program.
As a direct result of this activity the number of enquiries received by officebroker.com increased substantially from February 2010 onward. Such increases, while generating abnormally large changes when placed against previous data, will ensure that the statistics reported by officebroker.com are an even more accurate assessment of the serviced office market here in the UK.
- NEW SERVICED OFFICE TENANTS (SOTs)
The number of newly signed SOTs reduced by -9% in Q4 10
Quarterly Activity ΓÇô The number of businesses entering serviced office space via the officebroker.com serviced was -9% lower in Q4 10 than in the same period of 2009.
Year-to-Date-Activity ΓÇô ΓÇô Despite the decrease recorded in Q4 10, the overall number of newly signed SOTs entering space via the officebroker.com service during 2010 remains +10% above 2009 levels.
National Comparison ΓÇô During Q4 10 the total number of SOTs taking serviced office space through officebroker.com decreased nationally by -26% when compared to Q4 09.
Having recorded a decrease of -9% in new SOTS during Q4 10, the activity seen in the East of England suggests that the region has outperformed other areas of the UK during Q4 10.
Between January ΓÇô December 2010, the number of SOTs entering serviced office space in the East of England accounted for 8.4% of the total SOTs placed via the officebroker.com service in the UK.
- AVERAGE WORKSTATIONS PER SOT
Average requirement increased to 3.9 workstations
Quarterly Activity ΓÇô The average number of workstations per SOT totalled 3.9 at the close of Q4 10, an increase of +27% on the average workstation requirement of 3.0 per SOT recorded in Q4 09.
Year-to-Date-Activity ΓÇô Comparing activity month-on-month since the beginning of 2010, the average workstation requirement in the East of England has been 3.4 workstations per SOT, a requirement which is equal to the average workstation requirement recorded during 2009.
With an overall workstation requirement of 3.4 workstations per SOT, the East of England has posted the 3rd lowest individual requirements of any UK region in 2010.
National Comparison ΓÇô The average workstation requirement in the UK was 3.7 per SOT during Q4 10, a requirement which was within 3% of the Q4 09 requirement of 3.6 workstations per SOT previously recorded by officebroker.com.
Comparing this national activity to that recorded in the East of England in Q4 10, both the percentage change (+27%) and the average workstation requirement (3.9) exceed that of the national average.
- SERVICED OFFICE SPACE COSTS
Average workstation price was ┬ú221.00 in Q4 10
Quarterly Activity ΓÇô The average price per workstation in the East of England was ┬ú221.00 in Q4 10, an average price that is ┬ú7.00 (-3%) lower than the average price of ┬ú228.00 recorded in Q4 09.
Year-to-Date Activity ΓÇô Between January ΓÇô December 2010 the average workstation price recorded by officebroker.com was ┬ú218.00, a price which is ┬ú10.00 (-4%) lower than the average of ┬ú228.00 recorded in the same period of 2009.
Despite average workstation prices remaining within 4% of the higher 2009 prices, a difference of ┬ú88.00 per workstation was recorded by officebroker.com between the peak price of ┬ú264.00 per workstation in January and the September low of ┬ú176.00 per workstation.
National Comparison ΓÇô During Q4 10 the average price per workstation fell nationally by ┬ú6.00 (-3%), from ┬ú232.00 in Q4 09 to ┬ú226.00 by the close of Q4 10.
Comparing this national activity to that recorded in the East of England, both the percentage decrease (-3%) and average workstation price (┬ú221.00) has remained in line with the Q4 10 UK national averages.
- AVERAGE LICENSE LENGTHS
Initial license lengths increased to 7.6 months in Q4 10
Quarterly Comparison ΓÇô In Q4 10 new SOTs entering serviced office space in the East of England through officebroker.com were signing average license lengths of 7.6 months, an increase of 0.8 months (+12%) on the average license length of 6.8 months recorded during Q4 09.
Year-to-Date Comparison ΓÇô Between January ΓÇô December 2010, the average license length for this region of the UK was 7.7 months, an increase of 1% on the 2009 average of 7.6 months.
National Comparison ΓÇô During Q4 10 license lengths averaged 8 months nationally, an increase of 1 month (+14%) on the average license length of 7 months recorded during Q4 09.
With an average license length of 7.6 months being recorded in the East of England, businesses entering serviced office space via officebroker.com during this period appear to have been trending in-line with the national activity recorded during this same period.
When taking into account all the information for Q4 10, the following key findings can be drawn:
- Enquiry levels increased by +71% during Q4 10 compared to Q4 09.
- The number of newly signed SOTs was -9% lower in Q4 10 than Q4 09.
- Average workstation price fell by -3% during Q4 10 compared to Q4 09.
- Average license lengths increase to 7.6 months in Q4 10.
NEED TO KNOW MORE DETAIL?
Explore what our Insight Report service can offer by viewing a sample: CLICK HERE