Strong growth expectedl in serviced office market this year

Citation

(2001), "Strong growth expectedl in serviced office market this year", Facilities, Vol. 19 No. 10. https://doi.org/10.1108/f.2001.06919jab.004

Strong growth expectedl in serviced office market this year

Strong growth expectedl in serviced office market this year

Optimism despite dot.com slow downKeywords: Internet, Service industry, Property leases, Offices

The serviced office Web site, Instant Offices.co.uk, has uncovered a high level of confidence within the UK business centre sector in their first survey of 2001, Understanding the UK Serviced Office Market.

Instant Offices found that more than 60 per cent of business centre managers expect an increase in serviced office demand in the next year, while over 85 per cent state that current demand is higher than 12 months ago. This confidence is in spite of the recent downturn for a number of dot.com companies, many of which took serviced office space during their start-up.

Recruitment, technology and business services companies are fuelling the increased demand and have now replaced dot.coms as the driving force in the serviced office boom. A further increase in the market has come from companies locating in the UK for the first time with them now making up 15 per cent of total demand.

Robert Hamilton, the founder and managing director of Instant Offices, says: "This growth in demand is being met full on by the industry, with 28 new business centres opening in the last quarter in London alone. As businesses become more aware of the benefits of serviced offices, the greater will be the impact of the serviced office market on the commercial property industry."

The rise in "traditional" companies turning to serviced offices is not solely due to the slowdown in the new economy. Over 50 per cent of companies moving into serviced offices quote the ease of occupancy and flexibility as the overriding factors. Conventional leases, with their less flexible terms and greater financial exposure, simply do not satisfy the changing pattern of immediacy in the new business environment.

Robert Hamilton commented: "This research shows that the onset of a slowdown in any economy, new or old, does not necessarily mean a slowdown in the serviced office sector. Companies continue to seek out shorter term property solutions, giving fixed budgets and absolute flexibility and that is why 60 per cent of companies using serviced offices are in them for the first time."

For more information about the survey please contact: Philip Wright, Marketing Manager. Tel: +44 (0) 20 7376 8080; Fax: +44 (0) 20 7376 8008; E-mail: pmjw@instantoffices.co.uk; Or visit: www.instantoffices.co.uk