How Serviced Offices in Asia are Changing Everything

Last week, we explored how the positive impact serviced office solutions have made on the commercial property market. Knowledge of total occupancy cost before committing to a lease is a growing consideration for those seeking space, and is a trend that is likely to continue to shake up real estate for the better.

But what else is a key component facilitating change within the industry? That's the question on the lips of many commercial real estate (CRE) professionals.

Asia is a key market that continues to exhibit rapid economic growth. Flagged as an emerging economy in the last three decades, certain countries in the continent continue to go from strength to economic strength. Hong Kong, Shanghai, Tokyo, Seoul, and Singapore have undergone rapid commercial growth, with numerous skyscrapers and entire business districts being developed at record speeds.

As the exponential rate of growth beings to stabilise, potential for long-term business relationships begin to present themselves. The serviced office industry is keen to be the solution to the need for flexible, realistic office space in the Asia Pacific market, and has grown by a staggering 21% over the past 12 months, reports suggest.

Home to some of the most expensive cost-per-workstation cities in the world, serviced spaces have already proven to be an financially beneficial solution for businesses. Research by Search Office Space has shown that total occupancy costs in Hong Kong drop by almost $10,000 per workstation per annum in a serviced space - a saving too large to ignore in such a market.

With such a confidence in the Asia market, UK-based brokerage Search Office Space began a global expansion program with regional offices in Hong Kong.

"We're pushing the Asia Pacific side of the business, as part of our global growth agenda," said Search Office Space's chief operationing officer Jon Posener.

"Our focus is on developing a solid presence in these emerging markets, as well as other more established locations," he continued. "There is huge potential there, and as part of our strategy we want to be a part of that."