Office Space in Town Experiences Strong Revenue Growth in 2016
LONDON, November 14, 2016
Figures announced by leading serviced office provider, Office Space in Town (OSiT) forecast 2016 revenue to grow nearly 20% year on year to £17.25 million – a trebling of revenue over the past three years. The figures reveal that the numbers of enquiries and occupancy rates across their £160 million portfolio have increased since the EU referendum vote. OSiT’s figures indicate that demand for flexible office spaces has increased following the Brexit vote.
The nine month figures for 2016 indicate a sustained increase in revenue – up from £14.47 million in 2015. This continues the promising year on year growth in revenues experienced by Office Space in Town in previous years; in 2015 turnover climbed by 20%, up from £12.08 million in 2014. In 2014, turnover more than doubled on 2013’s figures, rising from £5.76 million.
In the three months since the EU referendum, OSiT has seen appetite from prospective tenants increase; following a short-lived fall (9.4%) in the immediate aftermath of the vote, the number of enquiries recovered significantly, increasing by 4% from July to August and by 16% from August to September, taking levels to a two-year high, with projections putting 2016’s increase at 12%.
Since the Brexit vote, occupancy levels across OSiT’s portfolio have increased; occupancy levels rose on average 6% across OSiT’s six London serviced offices, also remaining high before the vote, at close to 90% in June.
Giles Fuchs, CEO of Office Space in Town said: “Despite concerns that office vacancies would increase following Britain’s vote to leave the EU in June, it is clear from our figures that demand for serviced office space is continuing and increasing. The number of enquiries OSiT has received from prospective tenants and our rising occupancy levels since the vote show that our confidence was well placed.
The serviced office sector tends to be counter-cyclical; in times of uncertainty, businesses look for flexibility, whilst they assess the ramifications and establish how to navigate new waters. With more and more businesses seeking this solution in the wake of the referendum vote, it is unsurprising that the serviced office sector is seeing strong demand.”