LONDON, July 21, 2022 (GLOBE NEWSWIRE) — According to The Business Research Company’s research report on the serviced office market, serviced office companies are increasingly adopting offices with a lot of open spaces and a natural touch. As the pandemic has shifted the focus to social distancing and a healthy work environment, offices will be fully ventilated. Use of sustainable materials such as bamboo, installation of indoor plants, efficient air conditioning and social distancing will be implemented. In line with the growing concern for the environment and an eco-conscious lifestyle, workspaces are adapting to nature-inspired flooring, live plants and indoor vertical gardens, use of upcycled materials in workspace design and more. This is aimed to strengthen the human-nature connection and adds to an eco-friendly approach for organizations in the long run. Not only this, but energy efficiency is also a prime concern and sustainability plays an important role in addressing this in modern office spaces. The use of tech-enabled and minimal-touch equipment will be in vogue. Incidentally, sensing the trend of ultra-hygienic office spaces in 2022, the large co-working players have already put in place world-class sanitization mechanisms and technology-backed office spaces. For instance, according to a report by CBRE Group, Inc., an American commercial real estate services and investment firm, nearly one-third of total office spaces in six major cities in India have been certified as green buildings, as real estate developers are focusing more on sustainability aspects in their projects. Over the past decade, green real estate assets have grown tremendously, and their share of the total office stock has increased from 24 percent in 2011 to 31 percent in 2021.
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The global serviced office market size is expected to grow from $27.83 billion in 2021 to $33.30 billion in 2022 at a compound annual growth rate (CAGR) of 19.7%. The growth in the market is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities. that resulted in operational challenges. The serviced office market is expected to reach $64.06 billion in 2026 at a CAGR of 17.8%.
The growing demand for flexible office spaces is expected to be a key driver of the serviced office market in the forecast period. Flexible office providers are refurbishing old office buildings as they look to add new office spaces due to high demand from corporates and unicorns after the introduction of the hybrid work model during the pandemic. The demand for flexible office space has witnessed 3x growth compared to 2021, with the average seat requirement doubling to over 1,000 seats compared to 500 seats earlier by large corporations. Flex space operators leased over 1.9 msf of office space in Q1 2022 versus 0.2 msf in Q1 2021, recording a 10X rise on a YoY basis. For instance, according to JLL India, in the first six months of 2021 (January–June 2021), the new supply of office spaces in India reached 25.11 million square feet (sq. ft.), an increase of 75% YoY, across major cities (Delhi-NCR, Mumbai, Bengaluru, Pune, Hyderabad, and Chennai), due to the improved confidence of real estate companies for the recovery of workspace demand.
Major players in the serviced office market are WeWork Companies, Servcorp, Regus, IWG Plc., Bizspace Ltd, Alley, Croissant, Davinci Virtual, Greendesk, Hubble, Instant, JustCo, LiquidSpace, Office Freedom, Serendipity Labs, ShareDesk, TechSpace, The Office Group, Breather Inc, and Knotel.
TBRC’s global serviced office industry analysis is segmented by offering into private offices, virtual offices, others; by vertical into IT and telecommunications, media and entertainment, retail and consumer goods; by space provider into big brands, independent.
Asia-Pacific was the largest region in the serviced office market in 2021. North America was the second largest region in the serviced office market. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
Serviced Office Global Market Report 2022 – Market Size, Trends, And Global Forecast 2022-2026 is one of a series of new reports from The Business Research Company that provide serviced office market overviews, serviced office market analyze and forecast market size and growth for the whole market, serviced office market segments and geographies, serviced office market trends, serviced office market drivers, serviced office market restraints, serviced office market leading competitors’ revenues, serviced office market profiles and market shares in over 1,000 industry reports, covering over 2,500 markets segments and 60 geographies.
The report also gives in-depth analysis of the impact of COVID-19 on the market. The reports draw on 150,000 datasets, extensive secondary research, and exclusive insights from interviews with industry leaders. A highly experienced and expert team of analysts and modelers provides market analysis and forecasts. The reports identify top countries and segments for opportunities and strategies based on market trends and leading competitors’ approaches.
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