Serviced offices and virtual offices are gaining further traction in London. The reasons are many but few of the occupies that don’t need large floor plates are understandably reluctant to commit to long term leases, in uncertain economic circumstances.
The whole world shook in the latter half of 2008, after the financial collapse of Lehman Bros. The fear surrounding that period has largely disappeared but a lingering undercurrent of financial caution remains.
The serviced office market has understood occupiers concerns and provided the right product to the occupiers. Some providers have reacted quickly to this developing market. The right location is as ever, the key to filling voids. Bolt on services enhance the product where ultimate flexibility rules.
The corporate institutions are also alive to the benefits of using serviced office space. They typically use this service for opening satellite offices, understanding the flexibility this brings.
The challenge for one of the providers is ‘who will be the first to provide large open plan floor plates’. The first one to rise to this challenge may be brave. But this market is largely untapped. A global City such as London needs this provision. Disaster recovery, special projects which might have limited time spans immediately spring to mind.
One of the problems with this new product would be sourcing the building. The take up of space in London through 2010 has been brisk whilst speculative space has been much reduced due to the lack of bank financing appetite.
Movehut.co.uk are experiencing searches for large floor plates on a serviced offices basis. We await the response from the providers to match the demand.
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Serviced Offices in London
