The serviced offices market may be in full strength in many of the economic capitals of the world, but there is still a huge potential for this type of business lease. While London serviced offices are at the top end of the market, comprising more in serviced office workstations than the other top 5 cities from around the world, there is still a mass of areas in the capital and the UK which can offer growth to this emerging office market trend. So what are the benefits of serviced offices in comparison to others, and why will this market continue to grow around the world? The benefits are all in the flexibility and low risk associated with the Serviced office market, as businesses can tailor their premises needs in short periods of times and have choices that normal leases cannot offer.
Serviced offices are the perfect option for international corporations planning on making headway into new territories and this is why huge amounts of international growth are expected over the next decade, especially in Asian, American and African economic capitals. Corporations can make a low capital investment for starters and expand the size of their offices as they expand their influence in the local market. Should they require more space immediately, the flexible lease terms allow for almost immediate changes, and cancellations can be made without bankrupting an organisation. Due to these factors, Africa and certain Asian markets, such as India, are seeing new centre being opened almost monthly to ensure that businesses looking to invest have access to A-grade office space when entering a new market. These offerings also include everything that a company needs for start up, including desks, communications equipment and maintenance staff to ensure that as soon as employees move into the location they are ready for business from day one, without having to source furniture and equipment. Serviced offices can also be an interim solution for many companies sending advance teams into regions to solidify presence before making the full commitment to a region for business.
While serviced offices may seem to be an expensive package, the benefits and costs associated with them are very reasonable for the benefits received. Although rates in emerging markets may be slightly more expensive than in developed economic capitals, new centres will drop prices as markets flourish, benefitting the end consumer. New York has the second highest number of serviced offices, but only occupies a small percentage of the property market, so the area for expansion is available and the percentages are set to increase. Even in London, Office space Wimbledon is set to increase, as West End and Central London properties become saturated. With the ample benefits and the rise of business expansion, the serviced offices market internationally is set to increase dramatically over the next decade. For more information on the growth of the serviced offices market, read the full report online.
Sarah Mancini is a Freelance writer who specialises on articles regarding the corporate property market. She hopes to educate readers on the varirty of Office solutions available.