Partner Article

How Is Today’s Serviced Office Sector Viewed?

An office that is fully furnished and managed by a facility management (a type of asset management that is concerned with fruitful and profitable maintenance, operation and monitoring of building or property) is usually referred to as the serviced office. Serviced offices provide their customers with dedicated receptionists, administrative support, telecommunication services, computer management and internet connectivity. They also provide catering services, meeting rooms, conference rooms, furniture, air-conditioning services and insurance as well as full-time security.

Clients of SOIs fall into five categories namely: new market (with its headquarter overseas or in another location of the state which requires a business presence in the operation area), start-up companies (small to medium enterprises that do not make a financial commitment to long-term leases), overflow (large corporation experiencing growth with outgrown leased area), interim (clients that are in the process of moving from one space to another) and project based (clients that have a specific need for office space based on a particular contract or project). Through this client list, UK can generate billions as a stable economy on top of provisions of jobs to many unemployed people.

Serviced Office Industries (SOIs) are well regarded for the freedom they provide businesses and making these transactions easy to get to, even in budgetary shortcomings. These offices are suited to the personal preferences of the clients both in space and furnishing. Furthermore, they allow access to infrastructure that may not have been affordable to the businesses by sharing amenities with other rented offices (in accordance to the client’s needs).

It has been noted that the cost of desk spaces have gained doubled figures in the UK in recent years. This is to show what an effect serviced offices are having in the UK. The number of SOIs has rocketed to about 3.6% across the country with a cumulative growth in Central London being approximately 17% and that of the West End being about 11% in 2014.

SOIs have become increasingly common not only in the United Kingdom but globally as well. Reviews done in 2011, 2015 and 2016 by Instant provided a list of over fifty serviced offices markets globally most of which are located in Europe, America, and Asia. The 2017 forecast is also looking positive.

It was expected that the Brexit vote, through the referendum of 23rd June last year, would warrant the UK economy unstable. To the contrary, the economy grew stronger by 0.4% in July and the Bank of England says that the economy is expected to grow by 1.4% by 2018 while the National Institute of Economic and Social Research expects the economy to grow by 1.7% in 2017, 1.9% in 2018 and 2019 by 2.1%. Needless to say that serviced offices have played a significant role and will continue to have a huge effect on the economy.

Serviced offices are more reliable to the people of UK because they offer minimal commitment, short-term contracts as well as flexible working spaces. This majorly benefits companies seeking to reduce their lease terms and growth predictions. This is done to the favour of the businesses as SOIs have 3-12 month contracts and thereby saving them being legally obligated to pay for workspaces in a period of 3-5 years. With the case of growth predictions, businesses increase or decrease their workspaces depending on the growth rate of the companies which seeks the interest of the business. Furthermore, the services that come with SOIs do not fluctuate, rather, are included in their monthly rent.

It can be said that SOIs are highly regarded in the UK and cater to the interests of small upcoming businesses. They provide a very much needed service and are extremely beneficial to the economy.

This was posted in Bdaily's Members' News section by Kelly Wilson .