Avanta See Demand Increase Despite Credit Crunch
David Alberto, the chief executive of Avanta, has reported that demand for workspace is on the increase despite current economic conditions and the credit crunch.Avanta, who recently opened offices in Manchester, experienced a 10% increase in enquires for July and August, traditionally two of the quietest months of the year.
The trend is apparently not unique, with the Business Centre Association (BCA) expecting a growth in the sector of around 3% in the next year, which Avanta will not doubt be contributing to. The BCA research puts an impressive figure of 40,000 small to medium businesses currently occupying 40 million square feet of serviced office space across the country.
Alberto commented: “The two most important factors for occupiers when acquiring office space are capital expenditure and flexibility. In the current economic climate occupiers do not want to commit to lengthy and costly leaseholds.
“Small and growing companies in particular cannot gauge what their head count will be in twelve months, let alone five years, so require workplace which will allow them to expand or contract according to their needs.”
He continued: “For these reasons, managed business space provides an attractive proposition for businesses in this uncertain economic climate, and provides the leading operators in the sector with a growth opportunity, while playing an important role in providing flexible workspace solutions to meet the needs of modern day business.”
In the UK or overseas, Avanta’s appeal to occupiers is being able to offer highly flexible, unbranded office space tailored to the requirements individual businesses. This flexibility is underpinned by competitive and transparent fixed-costs, so occupiers can account for every penny they are spending on their office needs.
Offices North West have heard a few bullish accounts of demand in 2008 with many of the major operators also reporting increases in enquiries. If serviced office operators can keep conversion rates up, and avoid significant price cutting in major cities, then it could end up as a very good year for the sector.
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