Why London Serviced Offices Are Becoming the No.1 Choice
Submitted by Catrin Jenkins on
It takes a supplier of luxury serviced offices in London, like Landmark Plc, to know the market inside out. So trust us when we say that serviced offices aren't an alternative workplace solution anymore.
They're now a first choice solution for business of every size, shape and stature.
Serviced offices have long been a popular choice for small and medium-sized businesses. Considering that approximately 99% of the UK's 4.9million businesses are SMEs (according to 2014 government data), and the number of new startups yet again broke records last year, it's no surprise that the flexible workspace industry is growing fast.
And now, serviced offices are becoming the top choice for the other 1%, too.
Landmark Plc has seen this first-hand, with growing levels of interest from corporate clients looking for five-star workspace in London on flexible, manageable terms. But don't just take our word for it.
In October 2014, the City of London Corporation in association with Ramidus Consulting Limited, published a report to analyse this trend - "Serviced Offices and Agile Occupiers in the City of London"
The research identified key findings that corresponds with trends experienced by Landmark Plc. It found that around 70% of serviced office space is occupied by SMEs, with the remaining 30% given over to corporate requirements.
The report also found: "While serviced offices are generally thought of as ‘a first step’ on the commercial property ladder, in fact they often provide a second (and semi-permanent) step on the ladder."
In terms of future growth, the report claims that potential for growth in serviced offices in London and The City is expected to continue, particularly as "corporate occupiers are becoming accustomed to supporting their core property need with flexible ‘on-demand’ space."
What's driving this change?
A report published in Property Week last Friday by market analyst Allister Hayman explains this cultural shift, and makes the case for serviced offices as a flexible tool for corporate clients.
Hayman suggested that, in the wake of the devastating global recession, large corporates are shifting from years of cost-saving and retrenchment to a renewed focus on expansion. This includes a new top priority of attracting and retaining the best employees - and Hayman describes commercial workspace as a key front in this "war for talent".
Well-designed, open-plan offices with plenty of collaborative space is the new bargaining chip for companies looking to retain the best employees, which in turn is driving new trends in the Central London workspace market.
What was once a question of where employees want to be, is now about what kind of space they want to be in.
According to Hayman, this has translated into a demand for larger floor plates; more collaborative and co-working space; more flexible leases with break clauses; and serviced office space. As Landmark Plc is seeing, it also entails workspace of the highest quality, with high-end furnishings, a stylish finish and light, bright spaces in which to work.
According to Deloitte, serviced office space in The City doubled over the past decade. And the Business Centre Association found that the UK-wide serviced office market is now worth over £2billion - a figure that's expected to keep rising.
Landmark Plc shares this view and believes that, given the recent push from corporate firms to occupy more flexible lease terms, serviced office space is a market that will continue to strengthen. Growth in new technologies is enabling companies to become more agile and implement remote or mobile working strategies, which is not just a more affordable working strategy, but a more productive one too.
As more forward-thinking companies react to this trend, companies of all sizes - from small startups, through to large-scale multinationals - recognise that traditional, 'fixed' workspace on long-term leases is outdated. It's becoming obsolete. This is triggering rising demand for greater flexibility that allows a more fluid working pattern - resulting in a sharp uptake in serviced office space, a ready-made solution that's been growing steadily, quietly, for decades.
With the war for talent intensifying, now is the time to review your workspace and consider new, more flexible and more employee-friendly workplace strategies that befits a 21st century business.