Industry Analysis & Industry Trends
The Serviced Office Leasing industry has gained favour with an increasing number of businesses over the past five years. The flexibility of serviced offices has strengthened the 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 industry is catering to client desires by offering prime real estate instead of poorly maintained offices in mediocre locations.
The onset of the global financial crisis and subsequent collapse in business confidence and private building investment contributed to the industry's revenue losses over the three years through 2010-11... purchase to read more
Industry Report - Industry Investment Chapter
The Serviced Office Leasing industry is moderately capital-intensive. Extensive capital items are required when establishing an office, such as furniture and technological equipment. However, many of these items, particularly bulky items such as desks, chairs, whiteboards and meeting room tables, are depreciable over a long period. This helps reduce depreciation costs, which act as a proxy for the industry's capital spending. For every dollar spent on wages, the average industry participant will invest $0.20 in capital items in 2015-16.
The proliferation of virtual office services is reducing the need for labour within the industry, contributing to rising capital intensity over the past five years... purchase to read more