Office Space News
London Mayor Turns to Serviced Offices for Help
Published March 17th, 2009 by Jennifer LeClaire
Serviced offices are coming to the fore with innovative solutions in a down economy. Recent news demonstrates the power of city governments partnering with the executive office suites industry to help jumpstart local economies.
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Last week, I shared with you news about the Coalition of Office Space Providers, or COSP, and its initiatives to help start-ups find affordable office space and connect with potential investors in New York City. COSP partnered with New York City’s Economic Development Corporation to launch programs to help Manhattan’s financial service sector. Mayor Michael Bloomberg announced the partnership last month.
Across the ocean, London Mayor Boris Johnson made a similar announcement. Johnson is trying to woo foreign businesses to London with a cadre of incentives – including 12 months of free office space. That’s an offer that will certainly get the attention of entrepreneurs far and wide.
Avanta Saves the Day
How is Johnson able to make such a generous offer? By partnering with serviced office agency Avanta. Avanta will graciously offer up the free office space, valued at more than $150,000. What’s in it for Avanta? The international serviced office provider hopes the companies they host during these difficult times will form a long-term relationship with its brand that pays dividends for years to come.
The London Times Online reports that about 13 percent of London office space is vacant. Those vacancies drive rents down. That’s the bad news. The good news is it’s cheaper to leave in London than in New York City for the first time since 2002, according to a new report by the Economic Intelligence Unit. Johnson is hoping that reality, plus the free office space and a dedicated advisor, will help bring companies to the capital city.
Public-Private Officing Partnerships
The takeaway here is that economic development groups and government agencies are getting serious about helping to stop the bleeding in the office market – and they are looking to the serviced office industry for help. This is a significant development that brings another degree of credibility – and attention – to executive office suites.
Although traditional office developers may not be able to take the risk, serviced offices can at least hope to generate some revenue through the ancillary services they offer, like phone lines, copy machines, administrative assistance, etc. And with more office space sitting empty, the upside is serviced offices could win long-term clients – and referrals – by reaching out to help in a time of need.
This is the time for the executive office suites industry to gain some ground against traditional office developments. Innovative partnerships like the ones in Manhattan with COSP and in London with Avanta are paving the way for future growth in the entire industry.
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