Office space market is on the rise

 

This current economic climate has seen an increase in businesses looking to rent office space, according to office rentals specialist Regus, whose customers include GlaxoSmithKline, Google and Starbucks.

Mark Dixon, chief executive of the company, claims that it is “a result of more and more companies changing the way they work and starting to take up flexible workings, in particular large corporations.”

This has led to the company having a January to June pre-tax profit of £13m compares with last year’s £9.7m, and a revenue growth of 10% – up to £565.6m. Furthermore, Regus has seen occupancy levels at a record 86.7% and has raised its interim dividend 6% to 0.9p.

The company, however, noted a 67% decrease in earnings in March with the promise that cost-cutting and expansion will rectify this in 2011.

Dixon says, “We expect to see the level of growth increase in the second half as we are still seeing very healthy levels of demand with more companies looking to cut costs and move to flexible working and we will need to open up centres to supply to that demand.”

Regus is determined to see still more growth and are planning to invest in new centres, having spent £70m in opening a further 125 and moving into 7 new countries last year, resulting in a total of 88 countries housing centres.

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