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Office Freedom
Office Freedom
  • 3 Minute Read
  • 15th September 2008

Demand for Serviced Office Space increases in face of credit crunch

The chief executive of one of the UK’s leading serviced office companies has reported that demand for workspace is continuing to rise, despite the current economic climate and increasing impact of the credit crunch.

Avanta, operator of a network of business centres across London and key regional centres in the UK, has experienced a 10% rise in new enquiries in July and August this year, at a time of year when, historically, enquiries are typically down by up to 20%.

It is a trend which is reflected across the serviced office sector, with industry body the BCA (Business Centre Association), recently reporting that it expects the sector to experience an overall growth of 3% over the course of the next twelve months. There are currently over 40,000 SMEs occupying 40 million sq ft of serviced office space in the country.

While the conventional office market continues to struggle, business centres are now one of the best performing, prime growth sectors in commercial property. While there is a considerable oversupply of conventional office space, the opposite is true of serviced offices, which face the challenge of keeping up with overwhelming demand.

David Alberto formed Avanta in 2004, having built up a track record in the sector with Regus and MWB Business Exchange. He said: “The two most important factors for occupiers when acquiring office space are capital expenditure and flexibility. In the current economic climate occupiers do not want to commit to lengthy and costly leaseholds.

“Small and growing companies in particular cannot gauge what their head count will be in twelve months, let alone five years, so require workplace which will allow them to expand or contract according to their needs.”

He continued: “For these reasons, managed business space provides an attractive proposition for businesses in this uncertain economic climate, and provides the leading operators in the sector with a growth opportunity, while playing an important role in providing flexible workspace solutions to meet the needs of modern day business.”

Avanta has grown its business in London, where it currently operates 10 business centres in prime locations across the West End, Midtown and the City. In order to keep up with increasing demand, further centres are expected to open in the capital over the next month.

Recognising the right markets to operate in, at the right time, has been key to the success of Avanta’s business. This year the company has embarked on a major expansion drive into India and the Middle East, paving the way to open a number of new business centres in Delhi and Mumbai, with further offices expected to open in Bangalore and Dubai.

In the UK or overseas, Avanta’s appeal to occupiers is being able to offer highly flexible, unbranded office space tailor made to meet the requirements of the individual business. This flexibility is underpinned by competitively priced and transparent fixed-costs, so occupiers can account for every penny they are spending on their office needs.

The formula attracts small and medium sized businesses to FTSE 250 companies alike. The theory that a small business occupier and a major corporate want the same thing and are largely driven by location, quality and price, is central to Avanta’s business philosophy.

For more information please visit Avanta at www.avanta.co.uk.