MIPIM UK 2015: The serviced office market will increasingly be considered a viable alternative to “conventional” commercial property.
The UK has 36% of the world’s market for serviced offices – 34% in London – with the number predicted to rise dramatically, a panel at MIPIM UK 2015 heard.
Giles Fuchs, co-founder of Office Space in Town, said there were 341,000 desks in the capital.
And Regus chief executive Richard Morris said: “Occupiers will look to obtaining workspace as they would a service.”
IT and software professionals have taken a sizable chunk of the serviced office market but there is growing interest from the finance and recruitment sectors – as well as start-ups.
Though there is at present no consistent formula to value freehold serviced offices, by partnering with agents, building owners, property funds and landlords, there is potential for the serviced office market to diversify its offering, with management agreements, franchising and profit-share deals, the panel heard.
The panel agreed there needed to be further consultation with property professionals to establish a valuation method.
shekha.vyas@estatesgazette.com
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