There is encouraging news for the serviced offices sector, as figures show a healthy year-on-year rise in demand in London and throughout the UK during Q1 2011. Good news for any commercial property owners who have seen prices going up recently, and good news for those seeking serviced offices as the evidence is in now in to justify a greater investment in this sector, thus leading to more choice.
In Greater London, the first quarter of 2011 saw a rise in serviced offices demand (7%) and take-up (60%). The average serviced office tenancy was 8.8 months – a 3% rise. The average number of workstations per serviced office tenant fell from 5.3 to 3.6, and the average weekly price increased from £252 to £287.
Q1 statistics for Central London were more mixed. Enquiries for Central London serviced offices were up 21%. However, take-up declined in Central London by 4%. Prices for workstations decreased £5 to £509, although serviced office tenants appeared keener to remain, signing contracts for an average of 9.1 months, up from 7.9 months.
Across the UK, enquiries for serviced offices were up 4%. This was translated into a 15% increase in take-up. Average weekly prices across the UK fell £13 to £229 and average weekly take-up of serviced offices fell from 4.4 to 3.9 weeks.
In an MBD (Market and Business Development) report, which covers the years up to 2015, the UK serviced offices sector is anticipated to deliver 3–5% growth annually. As economic confidence returns, an expected increase in SMEs is predicted, further boosting a sector that will thankfully see a 22% rise in workstation availability by 2015. The report states that while the economic downturn affected SMEs, it allowed the serviced offices sector to target corporate clients, offering services and operating costs to rival fixed lease agreements.
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