Industry Analysis & Industry Trends
The flexibility of serviced offices has galvanised the Serviced Office Leasing industry's position in the office property market. Clients have warmed to the concept of securing a prestigious office location without having to commit to hefty long-term lease arrangements and permanent staffing costs.
The onset of the global financial crisis and subsequent collapse in business confidence and private building investment took the industry from boom conditions to an abrupt halt. The magnitude of the correction in the late 2000s left in its wake a leaner and fiercely competitive industry that has steadily grown from the 2009-10 trough... purchase to read more
Industry Report - Starting a New Business Chapter
There are medium barriers to entry into the industry, the principal being the financial capacity to purchase or lease substantial premises for fitting out into serviced offices. Leasing prime office space incurs significant costs, especially since the appeal of serviced offices provides clients with a prestige address and flexible accommodation arrangements, at a fraction of the cost of traditional office leasing. As addresses get more prestigious, new players must have the equity available to acquire the floor space.
The four largest players in the industry account for about 36% of annual revenue but less than 10% of total establishments, which indicates the presence of some economies of scale, particularly with the acquisition of desirable premises... purchase to read more