The London business footprint - the growth of serviced offices
The London Business Footprint is a series of reports which have been released by the Deloitte Real Estate Insight team, exploring the central London office markets from a business perspective.
This is the third instalment in the series, focusing on the rapidly evolving serviced office sector. It analyses the variety of concepts offered by the growing base of serviced office providers, and gives our view of how the sector will develop.
This report highlights:
- Serviced offices have become a natural choice for many first-time tenants, no longer a letting of last resort;
- The particularly strong growth of serviced offices in markets such as the City;
- A greater understanding and acceptance of co-working space, which is expected to lead to serviced offices being the first choice for small companies;
- The evolution of the offering from a simple desk solution to an innovative and flexible workspace, giving rise to a new breed of operators and opportunities, while concentration remains high and is dominated by ten operators; and
- The growth in entrepreneurial trends and the rise of the virtual office lead us to predict that demand for serviced offices will continue.