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 - Starting a New Business Chapter
There are moderate barriers prohibiting entry into the industry. The principal barrier is 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 almost 60.0% of annual revenue but less than 10% of total establishments. This indicates the presence of economies of scale, particularly with the acquisition of desirable premises... purchase to read more