Glasgow and Edinburgh see increased demand for office space
Glasgow and Edinburgh have seen an increase in the demand for office space.
Flexibility in leases is said to be a key aspect of the leases in the current financial climate.
Research has suggested that Scotland’s two largest cities saw an increased demand for office space in 2011.
The data, which was revealed by officebroker.com stated that Edinburgh had experienced an increase of 19% whilst Glasgow saw an increase of 14% despite the unstable economy.
It is said that businesses in both of the Scottish cities were looking for larger office space. In comparison to the previous year the average office requirements have increased by just under two workstations whilst in Edinburgh the average price per workstation increased by 28% to £315 making the city the most expensive outside Central London in terms of serviced office space.
Glasgow also saw a price increase of 21% in comparison to the previous year bringing the average price of office space up to £206.
The data also revealed that the length of the average contract in both cities was nine months, an indication in both cities that firms like to be flexible in terms of their leases which is especially essential with all of the economical uncertainty in the current climate.
Chris Meredith, who is UK head of sales at officebroker.com, says that the news is a reflection that there needs to be more flexibility amongst UK firms.
He said: “Scotland’s leading cities appear to remain attractive locations for business, with the growing number of larger firms entering the market indicating that flexibility is a core concern for businesses of all shapes and sizes.
“The activity recorded across Edinburgh & Glasgow reflects the changing needs of businesses during uncertain times.”
The research also states that the alternative to traditional office space has seen an increase in popularity with flexibility being a key issue and priority.
Chris Meredith added: “By choosing to utilise serviced office space businesses are introducing a levels of flexibility to their operations that traditional long-terms leases simply cannot offer. The competitive advantage this affords such businesses allows them to react more readily to changing demands while also not locking their capital into property.
“It is however worth noting that the departure of Tesco, who had occupied a significant portion of Edinburgh’s serviced office stock, may bring significant change in 2012.”