Flexible Workspace Outperforms Traditional Offices
The US-based Global Workstation Association (GWA) has released findings of its comprehensive study of the workspace industry, which reveals that the cost-effective and flexible solutions provided by its members have been fuelling industry growth at a time when the fortunes of traditional office space providers have been mixed.
The GWA 2011 Industry Financial Study reveals that providers of flexible managed workspace have enjoyed healthy increases in average occupancy levels whereas occupancy levels in the traditional office sector have remained unchanged. In addition, the survey reveals that workspace operators have enjoyed steady pricing increases whilst those in the traditional office sector have slipped.
The survey also highlights continued growth in core products provided by serviced office providers, such as virtual offices and meeting rooms. “Industry-wide, these services grew during the recession, but the real story is that these segments emerged from the recession supercharged,” comments John G Jordan, president of the GWA. “Mobile workers, who are self-employed or work with large companies, have seen the benefits of shedding the risk and limitations of the traditional office in favour of virtual offices, touchdown space and on-demand meeting spaces and they are embracing these alternatives.”
Positive growth in the use of flexible workspace has also been seen in the UK where Avanta Managed Offices, which operates 18 business centres and partners with Regent Business Centres in the US, has ended 2012 with record occupancy levels.
“Flexible workspace in the UK is now more popular than ever compared with traditional office space acquisition methods,” comments Geraint Evans, Avanta’s sales and marketing director. “Office clients no longer want to incur huge set-up or cap-ex costs and instead appreciate easy access to high quality flexible office space that can be right-sized to their exact market requirements.
“Despite the tough economic climate Avanta ended 2011 with an average 90% occupancy rate and we are not just smashing office space occupancy records as our meeting room revenues were up by 20% in 2011 compared with 2010.”