By Marcus Leach
The demand for Leeds office space has decreased, with nearly 20% fewer enquiries being reported since the beginning of 2011 when compared to the same period of 2010.
Based on the number of enquiries recorded (January — September 2010 vs.
2011) by officebroker.com, the UK’s leading independent office search &
consultancy service, the number of businesses actively looking for flexible
office space in the city centre has decreased by 18% in 2011.
Despite this apparent fall in demand, the number of individual firms
actually completing the move to new office space in the city centre has
increased by 14%.
“The number of businesses testing the water has fallen” explained Chris
Meredith, Head of Sales at officebroker.com.
“In 2010 there were a high number of price gatherers and deal checkers out
there, the impact of which was to artificially inflate enquiry levels. In
2011 this number has decreased considerably, with more active buyers
starting to reappear as has been shown by the greater number of businesses
committing to new office space within central Leeds.”
According to the City Focus: Leeds Q3 2011, a quarterly publication which
tracks changes in the City’s serviced office market, this increase in
clients may have also helped to increase the cost of securing such space,
with the average price of a single desk rising from £236 per month in 2010
to £266 per month in 2011.
“Price recovery appears to have been taking place since early 2011 and the
report shows that this has continued into Q3,” continued Mr Meredith.
“This is to be expected as the steady increase in new clients has
continued, with competition for the right office in the right location
increasing demand and subsequently cost.”
In contrast, elsewhere in Yorkshire, offices to rent in Sheffield have
continued to fall in price despite a 189% increase in the number of
businesses moving to serviced offices in Sheffield city centre.
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