Taking care of business: The flexibility provided by serviced offices has boosted revenue

The Serviced Office Leasing industry’s revenue has grown strongly over the past five years. This has been due to improving economic conditions, which have kept the business confidence index positive over the period and have helped boost demand from professional services and business tourism. Consequently, industry revenue is expected to grow at a compound annual rate of 4.4% over the five years through 2018-19, to reach $429.1 million. Industry revenue is projected to grow by 11.7% in the current year, as co-working space providers continue to expand their portfolio of listings.The Serviced Office Leasing industry has gained favour with an increasing number of businesses in Australia over the past five years...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Clients have warmed to the flexibility of serviced offices over the past five years
  • Rising competition has prevented operators from making significant profit margin increases
  • Stronger economic conditions are forecast to improve industry profit margins
  • Industry Report - Industry Key Buyers Chapter

    The Serviced Office Leasing industry displays moderate market share concentration. The industry’s four largest players are expected to account for over 40% of industry revenue in the current year. The industry’s largest players have been able to sustain market share through adding large scale office space in the major capitals and leveraging their market profile to continually secure clients. However, the emergence of large international co-working companies such as WeWork is expected to reduce market share concentration over the next five years.Despite the presence of several substantial sized players and no significant expansion from smaller firms over the past five years, the industry is currently in its growth phase. As ...purchase to read more.

    Additional Insights for the Serviced Office Leasing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Serviced Office Leasing Industry are

  • Ability to provide goods/services in diverse locations
  • Ability to vary services to suit different needs
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Demand from professional services in the Serviced Office Leasing industry impact industry performance..

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    What's in this report

    What is the Serviced Office Leasing Industry?

    Industry firms rent or lease fully furnished office space to businesses on a part-time or as-needed basis. Industry firms also lease  virtual offices and conference rooms.

    Industry Products
  • Serviced offices
  • Virtual office services
  • Conference and meeting rooms
  • Industry Activities
  • Office administration and support staff
  • Fitted-out office suites rental
  • Virtual office services rental
  • Meeting and conference room rental
  • Videoconferencing facilities rental
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Demand from professional services
  • Capital expenditure by the private sector
  • Business tourist visitor nights

  • Current Performance
  • Flexibility benefits
  • Growth factors
  • Profit and structure
  • Co-working
  • Chart: Revenue Growth

  • Industry Outlook
  • The appeal of flexibility
  • Growth factors
  • Profit and structure
  • Growth in co-working
  • Table: Serviced Office Leasing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Serviced Office Leasing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Information Media and Telecommunications
  • Financial and Insurance Services
  • Professional Services

  • Key Selling Industries
  • Furniture and Floor Covering Wholesaling
  • Office Property Operators
  • Telecommunications and Other Electrical Goods Wholesaling

  • Products & Services
  • Serviced offices
  • Virtual office services
  • Conference and meeting rooms
  • Chart: Serviced Office Leasing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Business service operators
  • IT and communication businesses
  • Finance and insurance businesses
  • Mining and utilities businesses
  • Other markets
  • Chart: Major Market Segmentation for the Serviced Office Leasing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Serviced Office Leasing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Serviced Office Leasing Industry

  • Industry Globalization
    Regus Australia Management Pty Ltd, Servcorp Limited, WeWork Australia Pty Ltd,
  • Table: Regus Australia Management Pty Ltd - financial performance
  • Table: Servcorp Limited - financial performance
  • Table: WeWork Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Serviced Office Leasing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Serviced Office Leasing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Refers to the temporary occupation of a work station. Typically, this is undertaken when employees outnumber the amount of desks.
  • Third-Place Environment
  • A workplace besides the office and the home.
  • Virtual Offices
  • Lessee only pays for the use of address, telephone number and receptionists without the physical space.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Serviced Office Leasing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Serviced Office Leasing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Serviced Office Leasing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Serviced Office Leasing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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