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Serviced office acquisitions show the rise of the sector

Serviced office acquisitions show the rise of the sector
1st November 2017

Serviced office acquisitions show the rise of the sector

With a certain amount of uncertainty gripping the market as a result of the Brexit referendum, companies are predominantly focusing on the near future – mainly, what are the next 2-3-4-5 years going to look like? As such, when it comes to office space, many firms are looking for added flexibility to safeguard themselves and allow themselves to expand or contract as needed.

It is no surprise, therefore, that companies such as WeWork, the Boutique Workplace Company, and Workspace are taking more and more space across London; the demand for serviced offices is higher than it has ever been.

Eugene O’Sullivan, Managing Director at tenant representation specialists Morgan Pryce, believes; “The market may be shifting in favour of more flexible leases. Morgan Pryce acts for a range of tenants, across all sectors, and we are seeing more and more companies looking for flexibility in their leases, whether it be by way of break clauses at the 2nd or 3rd years in conventional leases, or favouring serviced office solutions.

“The ability to move within a building on a flexible term is certainly proving attractive. However, there are costs associated with the flexible sector which aren’t found in conventional leases. If you are a company of a certain size, it may still make sense to look for a standard lease but ensure that you have the correct alienation and break clause provisions within your contract.”

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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