London Rental Values - the increase in conventional office rents has left serviced offices looking exceptionally good value.

It’s not just shares and commodities that have been enjoying rises in the last couple of years – commercial property has also been in recovery mode. Fund managers are feeling a lot more confident about the outlook. The UK commercial property market has experienced a remarkable polarisation post the financial crisis. At its worst point the asset class had fallen some 44% – an unparalleled event and worse than the early 1990s. Since the low point about eighteen months ago, there has been a recovery in prices as buyers return to the market but most of this activity has been confined to the very top or prime end of the market.

As a result of keen interest from foreign investors and sovereign wealth funds, ‘trophy’ properties have been bid up to the extent that they are now back to, or have exceeded, 2007 prices, driving some rental yields down below 4%. West End London offices are a good example; values have soared and rents are probably double where they were just a few years ago. In contrast, the prices of property perceived to be less glamorous have remained virtually unchanged, with risk-averse investors avoiding this secondary part of the market, despite the extraordinary high yields of close to double digits. So, unlike the equity markets, there has been no ‘dash for trash’ whereby investors have been happy to snap up distressed but fundamentally sound companies again.

The really interesting thing about the rental position right now is that whilst conventional office rents may have doubled in value, serviced office rents have remained at their low levels with no real prospect of any change in the immediate future. As a result, the differential between the two is huge and serviced offices are looking exceptionally good value at the moment.

Abacus Real Estate have a good stock of serviced offices to rent in London, particularly in the City of London, Mayfair, Covent Garden, Oxford Circus and Victoria.

Bruntwood office portfolio increases in value but profits decline.

In its annual results, the family owned commercial property company, revealed a 4% increase in the value of its office portfolio to £948m in 2010 compared to 2009. However, net profit declined by 11% to £11.1m compared to £12.5m in 2009.

There was a 28% increase in new lettings across its office portfolio in Manchester, Liverpool, Leeds and Birmingham, and turnover was up 3% to £100.2m.

The company also reported a 3.2% increase in its net worth to £310m over the same period.

Bruntwood’s chief executive, Chris Oglesby, said: “Despite a tough market and stiff competition, we have delivered a very impressive increase in new lettings with a record year in Greater Manchester and continued success in our other three cities, Birmingham, Leeds and Liverpool, where we have attracted significant new occupiers.

“Although the market appears to be awash with bargains at the moment, on closer scrutiny, there is very little stock offering value of any quality.”

Abacus Office Finder are pleased to be able to offer serviced offices owned by Bruntwood Business Centres Ltd in the following locations: Altringham, Cheadle Hulme, Knutsford, Warrington, Manchester, Liverpool, Birmingham and Leeds.


Read more: http://www.propertyweek.com/news/news-by-sector/offices/bruntwood-office-portfolio-increases-in-value-but-profits-decline/5012854.article#ixzz1CzRIakT9

Hong Kong's prime office market is looking strong according to a report from Knight Frank.

Hong Kong’s office leasing market was quiet in the traditionally low season of December, with many decision-making senior executives having left on vacation.

However, activity is expected to recover swiftly after the holidays, as the corporate sector has displayed strong intention to expand and leasing demand remains robust.

There were few headline-grabbing leasing deals in December and most transactions involved renewals, or relatively small buildings or floor plates. Value Partners committed to a mid-floor unit in Nexxus Building in Central, while AMTD Strategic Capital leased another in World Trade Centre in Causeway Bay.

Capitol Int’l leased two low-floor units in Infinitus Plaza (previously known as Vicwood Plaza) in Sheung Wan.

Abacus Real Estate are currently offering a range serviced offices in most areas of Hong Kong.

Encouraging news from Executive Offices Group about a market recovery.

Last week's contracting GDP figures and gloomy economic predictions were disappointing for industry to say the least. However Executive Office Group's own experience points to a different, much more positive outlook and with results from the serviced office sector traditionally seen as a precursor to future economic conditions, this could be good news for the wider economy.

EOG's Q4 results further the overall growth recorded in the serviced office sector over the course of 2010 - their wider customer base grew by 20%. In the past week alone, in which healthy levels of banking bonuses marked a renewed confidence in the financial sector, they recorded their largest number of office viewings and general enquiries since 2008; over 70% of which came from individuals and start-ups operating in the financial sector.

John Drover from EOG suggests that the message to industry in the context of serviced office performance is that there is light at the end of the tunnel. With entrepreneurship and start-ups critical to economic growth, the indication emerging from this implies that there are reasons to be cheerful as we move through Q1 2011.

Let's hope............

Demand remains surprisingly strong for serviced offices in England's capital city

Demand remains surprisingly strong for serviced offices in England's capital city.
Despite the worst economic climate in most people's living memory, there is still suprisingly strong interest in serviced offices in the City and West End. There's no denying that rents have fallen substantially but, at the right price, many companies are seeing the good common sense of moving into serviced offices rather than signing lengthy conventional leases. In these uncertain times, many companies really don't want to be tied into long leases on fixed amounts of office space which will inevitably be the wrong size for them before the end of the lease. By using serviced offices they are able only to take the amount of space they need right now, knowing that when they need to take on more staff, or maybe contract their workforce, they can simply move into a larger or smaller office within the same building - no change of address, no painful search for new premises etc. In most cases these moves can be arranged over a weekend - go home on Friday and return to your new office on Monday with everything in place for you to get on with what matters most - your own business.