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Service offices spread

25th August 2015

Service offices spread

As landlord demand more permanent terms and start-up companies have shorter life spans than ever, the need for flexible work space increases. The benefits to having serviced office is you can move in ASAP, it can come with furniture, and there is flexibility in the terms you need to sign up too. The other side of the coin is you are sharing facilities such as kitchens and meeting rooms with other tenants in the building and your actually office area can be very tight per person. You also tend to pay a higher cost than leased for the flexibility. 

As the demand for flexible offices increases, WeWork, a co-working office provider expands by taking two floors in a new development in Shoreditch. The rents for this space are around £50 psft. The firm is planning to triple its space in London by the end of 2016. 

Another serviced office provider, The Office Group, is looking to take another 3 floors in Bloomsbury Way. This provider is well known for providing flexible space in well-known buildings such as the Shard and the White Collar Factory.

Teresa Beatty a commercial surveyor said “It can be a big adjustment for companies to move from serviced office to a conventional lease, with many pros and cons to each. With many new serviced office providers entering the market, the options available for serviced offices can range from very impressive to very basic.”

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.

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