NEWS

US Inquiries Show Excellent Growth Rate for officebroker.com

In September, inquiries for executive suites through officebroker.com were 65% higher than September last year. In the face of a difficult economy, this reflects a strong performance and fantastic growth rate for officebroker.com.

More firms are placing inquiries for office space, according to officebroker.com figures

While the recession continues to rock the commercial property market, officebroker.com is pleased to report that inquiries for executive suites have shown considerable improvement throughout the third quarter of 2009.

This growth comes despite a global recession, which began just 18 months after officebroker.com expanded into the US.

But officebroker.com's recent performance represents a strong infrastructure which, rather than just keeping the company afloat, has also enabled a sustained period of growth.

However as shown by the below graph, officebroker.com experienced a dip in inquiries between February and May which shows just how much of an effect the recession had on small businesses in the US.

The below graph shows the shape of inquiries received by officebroker.com for office space in the US, from January through to September 2009.

This decline is most likely the combination of a range of factors such as rising unemployment, struggling firms and plummeting business confidence - all of which appear to have taken its toll during the early part of the year.

According to statistics from the first three quarters, May produced the lowest inquiry rate, representing a disappointing -37% drop in inquiries when compared to January. Consequently, Q2 2009 was overall down -21% from Q1.

Third quarter up 44%

However since May, office inquiries have shown an impressive recovery, with consistent month-on-month improvement represented by a positive upward curve (see above graph). As a result, Q3 was up 44% from Q2, and up 14% from Q1.

But not only have inquiries returned to form, they have also shown notable growth. In September, which marked the conclusion of Q3 2009, inquiries were at their highest rate of the year so far - a positive 6% growth over the previous month (August 2009).

Furthermore, September 2009's inquiry rate was a massive 65% higher than September 2008.

Billy Knauss, Vice President of officebroker.com, says that the rise in unemployment may have triggered a surge in small businesses and start-up ventures seeking short-term office space.

"The unemployment rate has increased which means that some people are thinking about opening their own company," says Billy. "We are seeing a lot of people, especially in the financial and hedge fund industries, popping up in a lot of markets."

Ironically, although born out of redundancies and job losses, this has the positive knock-on effect of encouraging skilled individuals to fill niche gaps in the market. This is also good news for the executive suite market, as it's ideally suited to start-up companies, thanks to its flexible nature and cost-saving benefits.

This could be contributing to officebroker.com's growth rate. Other factors could include an increase in marketing programs which have helped to raise awareness of executive suites.

Furthermore, this is proving to appeal not only to small and medium sized businesses, of which serviced offices are traditionally associated, but also with larger companies.

There are a growing number of corporate firms who are turning to serviced offices for flexible workspace that they can't find in a conventional, long-term lease agreement - and the serviced office is proving to be the ideal solution.

Dedication and strength

All in all these latest inquiry figures are especially positive during a difficult economy, and are a testament to officebroker.com's dedication and strength in the serviced office market.

officebroker.com's current performance is also represented by a recent office move, which saw the company occupy a new office in Dallas that's four times the size of the old space. This move has allowed the company to expand their team of consultants and leave room for future anticipated growth.

Overall, the recent shape of inquiries paints a positive picture for officebroker.com and the executive suite market over the coming months. Combined with the reported growth in Gross Domestic Product for the first time in a year, this signals hope of a revival in the economy which could trigger a boost in business confidence.

Commenting on this, Billy adds:

"Recent growth in GDP suggests that we are coming out of the recession, and I think these reports will help create a general positive vibe that we are close to the end of this lull. Hopefully this will help bolster the economy and build even more confidence for a lot of people that have been holding back on doing anything because of the recession."

To find out how a flexible office can benefit your business, and for more details on serviced office space to rent in the US, contact officebroker.com for free information and advice.