October 12th 2011
Boom is nurtured by UK business
& London is largest serviced office market globally
Instant has recently issued a global report highlighting the
burgeoning market – underlining the trend for businesses to introduce greater
flexibility into their property portfolio.
The overall number of serviced office centres worldwide
continued to rise, generating around US$6.2bn turnover in 2010, up from US$3.6bn
in 2005 before the global recession hit, proving the resilience of this market.
In 2008 the market was worth around US$5.2bn.
London has by far the largest
number of serviced offices in the world (414), making up 8% of the total, and
being equivalent to the combined size of the markets in Paris, New York, Tokyo,
Hong Kong and Sydney. The next largest market is New York, with 103 centres.
Branton Moore, Head of Market Research at Instant and author
of the report, said “This comprehensive study of the global industry highlights
how companies, in a diverse range of sectors, are looking for ever more
flexible ways to manage their business and to reduce the costs and risks around
their fixed assets. Companies are also
looking for convenience to mobilise staff globally, without raising the stakes
by committing to long-term property contracts.
Other key facts that come out of the report:
Serviced offices account for approximately 80
million square feet of space across the world, providing in the region of
The UK has the most developed market for
serviced offices, accounting for one in every 3 centres worldwide, whilst the
Asia Pacific region is the smallest, but is seeing considerable growth as more
companies appreciate the advantages of flexible offices and more operators open
up in the region.
Whilst average workstation rates fell in 2009,
they bounced back up significantly in 2010 and continue to rise during 2011.
Regus is the world’s largest provider of
serviced offices with a 20% market share; the second largest is Servcorp with a
market share of 2%.
To download the full report, click here.