In case you missed it, IBISWorld recently updated their market report on the Serviced Office Industry.
The report reflects the data they have accumulated which points to continued growth, along with emerging competition coming from several directions, including the trend to work from home.
We have reprinted the full press release on the study below as it makes interesting reading. You can purchase the full report on the IBISWorld website.
If competition continues to grow, how will you as a business center operator meet that competition?
We’ve already explored five possible ways to sharpen your competitive edge. But there are plenty more factors to consider. For instance, what role will coworking spaces play, both as competitors and potential partners? While it’s encouraging that studies are showing continued growth, the added attention on this industry will lead to stronger and more creative competitors. Are you up to it?
Serviced Office Leasing in the US Industry Market Research Report from IBISWorld Has Been Updated
The Serviced Office Leasing industry is growing; nevertheless, it was not impervious to the downs of the corporate sector, which is among its key downstream markets.
The Serviced Office Leasing industry provides businesses with renting and leasing workspace options, including fully furnished offices, virtual offices and conference and meeting rooms. Its end users include start-ups and Fortune 500 companies, and particularly those in the professional, scientific and technical sectors. During the early recovery from the recession, demand for this industry’s end users were restrained, as business activity was stifled by tightened access to credit and weak business sentiment. Regardless, a recovering economy provided industry operators with access to clients that would otherwise have chosen more expensive alternatives. Over the five years to 2015, industry revenue is estimated to increase.
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According to IBISWorld Industry Analyst Edward Rivera, “Between 2011 and 2013, the industry experienced high levels of growth as the total value of national corporate profit swelled.” In the first two years of this period, demand for professional, scientific and technical services reached their highest growth rates, aiding industry revenue growth. The result was a rising number of companies entering the growing Serviced Office Leasing industry, benefiting from renewed demand brought on by a rising number of businesses, corporate profit and workspace trends. Over the five years to 2015, the number of industry companies is estimated to grow.
“Over the five years to 2020, industry revenue is projected to increase, benefiting from a changing workforce that includes more telecommuters who rely on virtual office spaces and conference rooms,” says Rivera. However, future growth may be hampered by increasing levels of competition. Industry companies face significant external competition from substitute office spaces, including traditional office space, home offices, business suites in hotels and airports and “third place” work areas, such as coffee shops.
For more information, visit IBISWorld’s Serviced Office Leasing in the US industry report page.