According to research conducted by Deloitte Real Estate, the serviced office market has grown by 67% in the last decade, now covering 5m sq. ft across Central London.
Within the city, 1.7m sq. ft of the market is now comprised of serviced offices, 21% higher than in 2005. The growth in demand has been attributed to financial technology firms desiring space that is more central to their client base. Elsewhere, The West End holds 28% of the market share, while the Docklands holds less space but has still seen a drastic increase of around 350%.
Deloitte have suggested that the rise is also a result of growing SME’s, who are keen to avoid long term leases that are often unaffordable.
Deloitte, head of tenant representation, Chris Lewis, said, “the rise of this sector is partly because of the situation we have gone through with the economy, which has led to firms being reluctant to take up large spaces themselves when they are in start-up mode.”
The amount of serviced office providers has risen to over 80, more than 25% higher than in 2004. Lewis predicts that at the current rate, industry leaders such as British Land and Land Securities may be forced to amend their strategy to provide serviced offices.
By: Kirsty MacGregor
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