A Serviced Office Is A Recession Measure

Serviced offices have very low initial costs and clients can move in quickly, sometimes the day after the deal is signed. For those thinking of starting their own business, a serviced office is a welcome cost-saver.

The serviced office market grew 19% despite global recession. Meanwhile, in other news, more and more buildings are converted to serviced office centres. This growth (up US$6.2 billion in 2010, vs US$5.2 billion in 2008; pre-recession market in 2005, US$3.6 billion) can be attributed to the survival advantage of serviced offices. An advantage brought by their inherently flexible nature.

Serviced offices have very low initial costs and clients can move in quickly, sometimes the day after the deal is signed. The usual serviced offices are fully furnished with working phones and, broadband. Maintenance is done by the serviced office operator. Admin and receptionist services, fax, and copiers are typically shared by all tenants in the floor. Tenants can even request changes in the terms as needs change. And, when time comes that a tenant has to leave, exit can be as quick.

Thus, the boom in serviced offices is partly a reaction against the rising cost of maintaining an office in a recession - shared resources makes monthly costs much less compared to conventional offices. As the recession continued, many people who lost their jobs tried their hand in starting up their own businesses. They, of course, would prefer renting serviced offices - many are in prime locations as well.

The center of all this serviced office growth is London, which currently hold's the world's number 1 spot for serviced offices, 414 centers, 4 times the second largest, New York. It is still unclear whether this distinction is due to London being the world's number 1 financial center or whether many building owners scrambled to convert their empty buildings into business centres to escape the empty property tax; or whether more people have been laid off (UK unemployment has reached 2.51 million) and many of them started their own businesses.

One thing is certain, the UK is the world's serviced office capital. While many potential clients might prefer serviced offices in more well known UK areas, there are providers that offer offices in locations that are not yet very popular, but no less desirable. One of them is Office Space in Town, which owns offices in Northhampton, Edinburgh, Cardiff, and Aylesbury - choice cities with relatively low unemployment rates.

While people talk about the recession in the past tense, some economists predict the worst is yet to come. For those thinking of starting their own business, a serviced office is a welcome cost-saver.
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About TheOffice-UK
"Office Space in Town" offers quality - serviced offices in Cardiff, Edinburgh, Northampton and Aylesbury City Centres. We also provide Virtual Offices, Meeting Rooms and Conference Facilities for small, medium and corporate businesses in the UK.

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Mr Giles Fuchs
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