UK Serviced Office Space ΓÇô A Growing Market
Having begun in the 1980ΓÇÖs as a stop-off for travelling salesmen and a way of breaking up costs, serviced offices have grown to be an integral part of the way many businesses operate and now have a truly global reach.
From office space in iconic buildings to localised business centres and transportation hubs, serviced offices are now available in 1000ΓÇÖs of locations worldwide and are utilized by a wide range of businesses from start-up ventures to blue chip companies.
Within the UK the growing number of buildings being leased for or converted into serviced offices has grown substantially, with 766 serviced office buildings entering the market since December 2008 ΓÇô an increase of 44% in 15 months.
So what does this rapid expansion of serviced offices reveal about the changing workspace habits of modern businesses? One trend it certainly does reveal is that those with the money to invest in commercial property space believe serviced offices are a good prospect and that demand will continue to grow ΓÇô But is their assumption correct?
Our own statistics here at officebroker.com certainly point toward a strong and steady rise in the number of individual businesses entering serviced offices year-on-year, the latest of which saw an annual increase of 13% on 2008 levels during the cause of 2009. This rising demand, which based on early 2010 statistics from officebroker.com, looks set to continue and has also been boosted by a rise in both workstation take-up and initial license lengths, signalling a real appetite from businesses for this kind of workspace.
While it is likely that many businesses will ultimately wish to purchase an office space of their own at some point in the future, such is the property obsessed culture in which we live, serviced office space acts as the perfect environment in which businesses can test themselves in the wider market by keeping overheads fixed and commitment levels to a relative minimum.
Serviced offices also provide a near perfect solution to those businesses looking to branch out ΓÇô whether this is an additional location in the UK or stepping into the international market. In both cases a business choosing to utilise serviced office space will be able to get set up and running in their new location within days if necessary – cutting down on wasted time and increasing productivity. It is then perhaps no surprise that companies as well regarded as Microsoft, Prudential and Serco have or continue to make use of serviced offices.
So with more serviced offices entering the market and demand from business owners increasing the long-term health of the serviced office space industry looks good. This prognosis is perhaps strengthened yet further when considering this demand has occurred despite the worldwide economic crisis that has surrounded us all during the last few years ΓÇô and likely to continue affecting us for many years to come.