Regus & MWB Business Exchange – Both Positive on 2011 Prospects
Two of the largest providers of serviced office space here in the UK have revealed how they have fared during the first half of 2010 while also providing an insight into how they view the immediate and long-term future of the serviced office space market.
First up we have Regus, the worldΓÇÖs largest provider of serviced office space, who reported a reduction in pre-tax profits but also added an additional 40 serviced offices to its portfolio during the first 6 months of the year. In addition to their continued expansion they also committed over ┬ú15m to the restructuring of its UK operations ΓÇô an on-going process that was revealed alongside a widespread refurbishment program by Chairman Mark Dixon during a visit to the officebroker.com head office in June.
ΓÇ£With the increasing trend by companies toward flexible working, we are well placed as the market leader and will use our strong cash position to take advantage of this compelling growth opportunity.ΓÇ¥ explained Regus founder Mark Dixon, highlighting the firmΓÇÖs belief that serviced office space will become the practical solution of choice for more and more businesses as new working practices continue to influence decision makers.
John Spencer, Chief Executive of office space provider MWB Business Exchange, also delivered a positive message ΓÇô suggesting that the difficulties endured have finally begun to stabilise and provide encouraging signs for the coming months ΓÇô a situation which was explored in detail by an article charting the Peak to Trough activity in the market by officebroker.com.
“There are now clear signsΓÇ¥ explained John Spencer ΓÇ£that our key performance indicators such as occupancy and rates are stabilising and showing evidence of some growth.”
“This has been particularly noticeable in the past three or four months. If this trend continues, should produce a stronger second half performance as well as laying solid foundations for 2011.ΓÇ¥
The suggestion made of a returning stability to the serviced office market is also present in research from the UKΓÇÖs largest broker of serviced office space officebroker.com.
Based on their internal data, the Serviced Office Review series reported a +2% increase in average workstation prices nationally during the opening 6 months of 2010 ΓÇô an improvement on the 15% decrease in workstation prices that was recorded during the same period of 2009 as the market was hit by the economic downturn.
In the same research however, it is also shown that the overall stability in workstation prices of serviced office space was the result of increased activity in regions such as Central London, Scotland and the South East ΓÇô all of which helped to compensate for those regions in which workstation prices have continued to decrease.