Recent figures have shown that the UK’s property bubble is not unique to residential properties. According to figures published by Cushman & Wakefield, London’s West End is the world’s most expensive office market, retaining its title for the third consecutive year. Renting one meter of squared office space here costs EUR 2,344 annually, in comparison to second-place Hong Kong’s EUR 1,636 per square meter annually third-place New York’s EUR 1,162 per square meter annually.
Accommodating the Market
According to the Federation of Small Businesses, small firms accounted for 99.3% of all private sector businesses in the UK. Now that setting up your own business is easier than ever, leading world cities like New York and Hong Kong have seen significant expansion in the serviced office industry to accommodate these new start-ups. However, it’s London that has been at the forefront of this market for a number of years now, with more workstations than any other city in the world, equivalent to the combined market share of Paris, Tokyo, New York, Hong Kong, and Sydney.
How the Market Compares
Lone entrepreneurs or small business with a limited staff often rent just a desk to fulfil their needs. In this case, you can benefit from the advantages without having to worry about the big price tag. According, to an article from the Independent, the average cost for a spare desk in London is £348 a month, which includes rates, heating, lighting, power, and broadband. In comparison, a fully serviced office costs between £400 and £800 a month and a conventional office space large enough to accommodate four people costs between £1,600 and £3,000 per month.
Reacting to Changing Demands
Finally, the main reason companies have become so drawn to serviced offices is the amount of options it provides. Space can berented by the square footage which, crucially, is flexible enough to be changed without the risk of voiding your contract. This isideal for all types of businesses, from small start-ups expecting growth early on to larger businesses who can benefit from the ability to downsize during tough economic climates. As facilities are often found in large business centres, tenants are also able to take advantage of shared reception services, meeting rooms, and other resources, providing reduced costs and access to equipment which may otherwise have been unavailable to them.
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