September 28, 2001—The average occupancy level for all business centres is 74% and the occupancy period at least nine months, according to the report UK Serviced Office Market 2001.
The report by Actium Consult, City University Business School and Instant Offices is the first extensive, independent research into the serviced office industry. They found that the occupancy figure of 74% would have been higher, had new centres (those under 12 months old) been excluded.
Since the beginning of last year, the number of available workstations has increased by 37% and in London there are now 37,000 workstations, accounting for 1.5% of total office supply or almost 370,000 sq m (4m sq ft). The researchers say this indicates the serviced office sector has become a well established part of the office supply chain rather than an isolated niche market.
While the average stay of a client in a serviced office is nine months, clients occupying beyond 12 months were excluded. Companies staying for less than three months accounted for just 3% of users.
Andrew Procter, managing director of Actium Consult said: “This increase in the length of stay by companies in the serviced office sector reflects companies desire to outsource their property and concentrate on their core business. The strength in operators occupancy figures reflects a growing desire from companies to have more flexibility in their property solutions.”
Actium Consult is a niche management consultancy practice, which specialises in the serviced office market and Instant Offices is an independent provider of on-line serviced office information for the UK and European markets.
—Jessica Jarlvi
Reprinted with permission; copyright 2001 i-FM
