Serviced offices are playing a
growing role in the West End office market, with take-up during the first half
of 2015 reaching 123,925 sq ft, according to Savills, just above the long-term
annual average of 122,490 sq ft.
In 2014, serviced office take-up
hit 337,195 sq ft, almost three times the annual average, and accounted for up
to 8% of total take-up. In the first half of this year, serviced offices stood
at 3% of total take-up.
Ben Raywood, analyst at Savills
Commercial Research, says the increase in take-up in the West End is down to a
rising occupational market and an increase in start-up companies.
“[Serviced offices] were always
in the market for space, but now they are a real prevalent occupier that
landlords and agents will be targeting because they are very active in taking
large quantities of space,” he says.
Savills’ research shows that most
space being taken by serviced offices in the West End is in W1. Raywood says
this is due to serviced offices targeting new space from landlords.
But Raywood says the rise
in serviced office take-up is not without risk if the market dips.
He adds: “In a rising market
where you have a lot of people looking for space, they operate efficiently.
When you’re in a downturn they will struggle more to let their space at a
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