NEWS

for hidden costs." he says. "It is a total cost of occupation rather than per square foot."

Either way, Stokes is certain the offering is a lot more professional now. "The industry has matured over the past few years," he says.

Yorkshire's office agents have also noticed increased professionalism in the serviced market and are aware of their increasing popularity in the current climate. But they are divided on whether serviced offices are a better option than traditional leasehold space.

Guy Cooke, a partner at Knight Fran! in Leeds, says: "On balance there is a flight towards them if they are well located. People are uncertain and don't want lease liability on their balance sheet. Flexibility is key at the moment.

"But if you get to a certain size they become bad value. Once you get over 3,000 sq ft they become expensive. It is also hard to compare costs. Operators can be quite cute in how they market costs. But they have raised the quality over the past few years. They are more transparent about what the offer is."

Nick Baker, associate director of agency and development at Atisreal in Sheffield, agrees. "While serviced offices can be convenient in the short term," h< says, "they can be expensive and don't really fit with a long-term business plan that accounts for the changing needs of the occupier's operations."

Eamon Fox, associate director at DTZ in Leeds, says: "Occupiers ultimately pa> for the privilege of flexible, serviced accommodation. However, the upside is flexible lease terms, allowing the occupier to focus on what they are good at - the success of their business.

"In the tougher economy, landlords will have to be more flexible on leases, or lose out to the serviced providers. We are already seeing landlords becoming more fluid on this front, particularly for second-hand refurbished product.

"There has been an influx of serviced providers in the region, although it is a competitive market and only the more established players succeed. A high level of resource is required in the background to ensure a successful

operation, which cannot be provided by all.

"DTZ let 26,000 sq ft to Regus at Wellington Place in Leeds last year and it has continued to do very well, with an impressive occupier line-up. Equally, Bruntwood provides serviced accommodation at West One on Wellington Street, also in Leeds, and its offering is the benchmark others follow. Bruntwood has a strong customer-facing team, ensuring occupiers' needs are met."

Kevin White, a sales surveyor at Bruntwood, agrees customer service is key to its success. "Our business model is based on long-term relationships," he says. "West One is an example of that. We have more than 100,000 sq ft of space that we have let on serviced, managed and traditional leased terms.

"We can provide for any requirement from one hour up to 25 years. We aim to incubate our customers through their uncertain stages or periods of growth in our flexible serviced space, and then provide them with a longer-term solution ideally under the same roof but at worst, elsewhere in our portfolio."

This mix of serviced and leased accommodation may well become the norm, but there are still plenty of opportunities for those who want to remain purely serviced office providers.

Oliver Corrigan, office manager and part of the family that runs the Carrwood Park serviced office centre in Colton, Leeds, says: "We go a long way on being a family business. I have to face the customers every morning."

Carrwood Park offers 20,000 sq ft of serviced office space around a central atrium, and Corrigan says costs are competitive. "We have open plan space for hot desking that starts at £75 per person per week. A double person room is £800 all in per month."

Corrigan says his company works on blocks of six months and that flexible options are built in. "If the room price is £2,000 there may be a contract incentive of £1,800 for six months. Then it could be a 30-day notice period but the price is up to £2,000," he says.

That flexibility mantra