HQ's current occupancy level is at its highest since theindustry peak in 2000. Occupancy has been rising month on month forthe last 12 months, with new signings at HQ increasing by 10%-15%on the same time last year.

According to John Drover, UK sales director at HQ GlobalWorkplaces, such upturn in the serviced office market generallyanticipates activity in the traditional office market within theyear, spelling good news for UK commercial real estate. Drovercommented: 'It is interesting to note that across the board thetrend is for the traditional office market to follow the fortunesof the serviced office market. Indeed, in many ways we provide asnapshot of how the traditional market may be performing one yearfrom now.

'This relationship is primarily due to lead times; although thedecisions are made in parallel, the actualities are reflected inoccupancy immediately in the serviced sector and anything up to 12months later in traditional lease terms.'