School’s out for the summer and the kids are coming home. They will be clutching their end-of-term school reports, keen to read the teacher’s words contained within. If the Central London and Greater London serviced offices sectors were two of these pupils, with their own file of teacher’s comments, how would they be feeling? Have their performances over the last three months been outstanding? Above average? Satisfactory? Or are they facing a summer of extra schooling and a period of stringent pocket money reduction?
According to an industry source, at least for the second quarter of 2011, both can breathe a sigh of relief, put the books away, and perhaps even ask for a new PlayStation game.
There has been an increase in enquiries for serviced offices in both Central and Greater London well into the double figures, close to a 20% increase in fact, which must put a smile on the faces of proud landlords up and down the capital. But it’s the rise in the average weekly rental price of workstations in the capital that has truly separated it from the rest of the country with a 15% hike since Q2 2010. This improvement far exceeds the rest of the UK market, where regular bouts of bunking off and smoking of cigarettes behind the bike sheds resulted in a smaller rise of just 2%. Average licence lengths were also up in London, far outstripping the rest of the country.
The explanation is simple, and one that we have repeated numerous times before here in this blog – it’s all a matter of supply and demand. Serviced offices are in shorter supply than ever before and because the demand for serviced offices is up and the supply is down the result is that the prices start to head skyward.
The serviced offices market is regarded as ‘continuing to move forward’, a statement which should be enough to guarantee a happy summer for the sector.
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