What you need to know

The serviced office industry is one of the fastest growing sectors in the UK property market. Since the global recession, many businesses have started using serviced offices because of their cost efficiency, flexibility and practicality.

In London and key regional cities, serviced office providers are now competing with an explosion of co-working spaces from the likes of WeWork, Workspace and TOG. Many co-working brands offer additional perks and professional and social events, which help to develop a strong community to support collaboration. In response to the increased popularity of co-working spaces, traditional serviced office providers have had to innovate and diversify their offerings to create clearer and more distinctive customer offers.

A growing number of serviced office providers now provide hybrid offices, mixing private space such as those found in serviced offices, with open, co-working spaces and flexible membership options.

Covered in this Report

For the purposes of this Report, Mintel has used the following definitions:

Serviced offices are commercial buildings providing short-term contract accommodation, including reception services, furniture, telephony and information technology infrastructure.

MBD’s market definition includes serviced offices, semi-serviced offices, business centres and managed workspace.

The serviced offices industry has also incorporated ‘flexible workspace’ into its overall description due to the increasing hybridisation of workspace, which reflects continuing changes in business needs and shifting demand towards co-working and increased flexibility. Serviced office providers increasingly offer hybrid offices, providing private space such as those found in serviced offices, mixed with open, co-working spaces and flexible membership options.

For the purposes of compiling the market size, third place locations (work spaces for drop-in customers rather than dedicated office space) and purely co-working spaces (work spaces, usually pay-as-you-go, dedicated as a shared working environment) are excluded. However, these types of accommodation are considered when analysing market trends, commercial opportunities, and operators’ performance.

Serviced offices are fully fitted and furnished. The operator is not only responsible for the building maintenance, but also provides a range of business services, which may include meeting and conference facilities, and support services - from catering to presentation equipment, reception, secretarial and clerical services, IT and telecommunications support, video conferencing and internet access. This enables clients to occupy the premises and outsource costly internal operations.

All of the values quoted in this report are at current prices unless otherwise specified.

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